Vice President Kamala Harris recently outlined her economic agenda, which includes calling for higher taxes on wealthy Americans and corporations. Harris has endorsed President Joe Biden’s proposed tax increases, such as a 25% minimum tax on total income for individuals with assets exceeding $100 million.
If enacted, taxpayers above the $100 million threshold would need to report unrealized gains annually, along with total liabilities. Currently, investors are subjected to capital gains taxes when selling profitable assets, but Biden’s proposed billionaire minimum tax faces significant opposition.
Experts like Steve Rosenthal from the Urban-Brookings Tax Policy Center argue that there is minimal political backing for Harris and Biden’s tax plan. Despite multiple efforts to push for a billionaire minimum tax, the proposals have struggled to gain traction in the Senate.
Even prominent figures in the business community, such as billionaire entrepreneur Mark Cuban, have expressed skepticism about the feasibility of taxing unrealized gains. Cuban believes that implementing such a tax would have detrimental effects on the stock market and is unlikely to happen.
While many Americans support the idea of higher taxes on the wealthy, policy experts like Erica York from the Tax Foundation’s Center for Federal Tax Policy have raised concerns about the practicality and effectiveness of Biden’s proposed tax plan. York believes that the policy could lead to administrative challenges, liquidity issues, and disagreements with the IRS.
Vice President Kamala Harris’ proposed tax plan, which includes a billionaire minimum tax on unrealized gains, faces significant obstacles. The lack of political support, pushback from the business community, and criticism from policy experts all contribute to the unlikelihood of the plan being enacted. Despite Harris and Biden’s efforts to address income inequality through higher taxes on the wealthy, the proposed tax plan may not be as effective or feasible as intended.
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