He pivots left again, with a 20% tax on unrealized asset gains.
It's a new tax on Americans with $100 million or more in assets whose effective tax rate in any year is less than 20% of their income.
These taxpayers already pay a 23.8% tax rate on capital gains and 37% on ordinary income.
Hasn't the left spent years deploring investor "Short-termism"? Another disingenuous argument is that taxing only realized gains narrows the tax base and requires higher tax rates on income.
Its budget proposes raising the corporate rate to 28% from 21% and the individual top rate to 39.6%. The wealth tax is intended as an entirely new and additional revenue stream that would rake in close to $360 billion over 10 years.
The income tax in 1913 applied a 7% top rate on taxpayers making more than $500,000.
The Alternative Minimum Tax was created in 1969 as a flat 10% tax on the uber-rich but grew to cover tens of millions in the middle class.
The Sixteenth Amendment lets Congress tax income, but unrealized capital gains aren't income any more than unvested stock options are.
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