Kamala Harris’ 25% tax on unrealized gains could lead to significant economic disruption. Imagine you invest $50,000 in stocks, and the value grows to $70,000. Under this proposed 25% tax, you’d be taxed on the $20,000 gain, even though you haven’t sold any shares. Now, picture the value of your shares dropping to $45,000 the following year—you’d still owe taxes on gains, even if you’ve lost money. This could force many to sell investments just to cover their tax bills.
Potential consequences:
- Middle-class investors could be severely impacted, with savings, retirement funds, and college accounts at risk.
- Market instability could result from forced sell-offs, causing a sharp decline in stock prices and wiping out billions of dollars.
- Widespread investor withdrawals could trigger an economic downturn or even a recession.
Is this policy a potential threat to the economy, or will investors adapt? Let's explore the impact of this controversial proposal.
