Democratic presidential nominee Kamala Harris has put forward a plan to introduce a 25% tax on unrealized capital gains for Americans with a net worth of $100 million or more. This proposal aims to address what is deemed as an unfair advantage for wealthy individuals, who benefit from appreciation of unrealized gains while paying a lower tax rate when they cash out.
However, critics argue that this tax would hinder savings and entrepreneurship, as well as create administrative challenges for both taxpayers and the IRS. The proposal would require an extensive wealth reporting system to track the assets of an unspecified number of Americans annually.
The implementation of this 25% tax on unrealized capital gains is predicted to have negative repercussions on North Carolina’s housing market. Experts suggest that taxing unrealized gains could decrease the value of homes and deter people from purchasing property. This could worsen housing shortages in the state and make it more challenging for low- and middle-income families to afford homes.
While the Harris campaign defends the tax proposal as only targeting the ultra-wealthy, critics argue that the repercussions would be felt by families across all income levels. This proposal has sparked a debate over the potential consequences of taxing gains that have not been realized, with many experts warning of economic pitfalls and unintended consequences if implemented.
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