The Biden-Harris administration’s proposed 2025 budget is causing grave concern across the financial sector, with its most controversial element being a 25% minimum tax on unrealized gains for individuals with over $100 million in assets.
This proposal, endorsed by the Kamala Harris campaign, could have far-reaching disastrous consequences for the American economy.
Remember, the federal income tax initially affected less than 1% of households.
Unrealized gains are increases in the value of assets you own but haven’t sold yet.
As the Wall Street Journal editorial board pointed out, “Taxing unrealized gains means taxing income that doesn’t yet exist.” It’s like being charged for groceries you haven’t bought yet, based on what’s on your shopping list.
Many wealthy individuals are business owners and entrepreneurs.
There are about 10,000 Americans with wealth exceeding $100 million.
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