Is Kamala Harris's Tax on Unrealized Capital Gains a Reason to Vote for Her?

With the presidential election season heating up, there's a lot of chatter about the policies that define each candidate. One such policy that has sparked debate is Kamala Harris's proposal to tax unrealized capital gains from those making over $100 million a year. As the choice to run against Joe Biden, Kamala Harris has proposed a range of policies aimed at addressing income inequality and supporting the middle class. However, the question remains: should voters support her despite this potential change to tax policy?

Why the Debate Arises

The discussion around Harris's proposal brings up valid points about how the government should fund its operations. As some argue, borrowing through debt or imposing tariffs like those proposed by Trump are not the sustainable solutions for the government. A more direct approach, such as taxing unrealized capital gains, can be argued as a fairer way to collect revenue. However, critics point out that such a tax would be unfair and an attack on those who use legitimate financial strategies, such as Elon Musk, for spending money without paying income tax.

Understanding the Proposal

Kamala Harris's proposal specifically targets those making $100 million or more annually and aims to tax their unrealized capital gains. This means that if someone owns assets that have appreciated in value but have not yet been sold, any gains from those assets would be taxable. While this may seem like a no-brainer, the equity and flexibility in holding onto such assets can be a legitimate financial strategy. Critics argue that such a proposal would disproportionately affect those who have built their wealth through legitimate means, such as investing in successful businesses or the stock market.

Exposure to the Tax

For most individuals, the tax on unrealized capital gains is not something that directly affects them. In fact, the proposal is expected to impact only a small fraction of the population. The Internal Revenue Service (IRS) estimates that only about 1,000 people in the United States will be affected by this tax. Furthermore, the process of passing such a tax involves multiple layers of congressional approval, ensuring that such a significant change would not be implemented lightly.

Alignment with Political Priorities

When deciding whether to vote for a candidate, it's important to consider their alignment with your own political priorities. For many, the minimum wage proposal that Kamala Harris supports should be a significant draw. Her plan to raise the minimum wage to a level that ensures no full-time worker lives in poverty aligns with the needs of the working class and disadvantaged. For others, the overall impact of her policies may not fully align, but the flexibility to vote for a candidate who aligns on some major issues is valuable.

Conclusion: Is It Worth the Tax?

In conclusion, whether to vote for Kamala Harris despite her proposal to tax unrealized capital gains depends on your specific priorities and concerns. While the proposal may be seen as a potential disincentive to wealth accumulation, it also represents a step towards addressing income inequality. The impact on most individuals is minimal, and the process of enacting such a tax is complex and not easily implementable.