Is a 25% Tax on Unrealized Gains Kamala Harris' Recipe for Economic Chaos?
1/ 🚨 25% Tax Proposal: Kamala Harris' economic team has reportedly discussed a 25% tax on unrealized capital gains – meaning investors would be taxed on profits they haven't cashed out yet.
2/ 🏦 Impact on Investors: This proposal could hit stock, crypto, and real estate investors hard, forcing them to pay taxes on the rise in asset values before they sell.
3/ 💥 Risk of Market Crash? Experts warn that this could trigger massive sell-offs in the market, as investors liquidate assets to cover their tax bills, potentially leading to a stock market crash.
4/ 📉 Great Depression 2.0? Some fear this drastic tax policy could result in a severe economic downturn, drawing comparisons to the conditions leading up to the Great Depression.
5/ 💡 Policy Challenges: Implementing such a tax is seen as extremely difficult. Determining value changes and keeping track of volatile assets like crypto poses major hurdles.
6/ 🚨 Controversy: Critics argue that taxing unrealized gains is not just risky but unfair, as investors may have to pay taxes without having any actual cash on hand.
7/ ⚠️ Market Reactions: A change of this magnitude could reshape the investment landscape, and it’s likely to face heavy opposition from both individual investors and big institutions.