Unrealized Gains Tax: How Harris’s Plan Could Affect Crypto Wallets
Kamala Harris, the Democratic candidate for the 2024 presidential election and current vice president of the United States, is facing criticism for her proposal to tax unrealized capital gains. CNBC hosts Rebecca Quick and Joe Kernen have expressed opposition to the plan, calling it “unfair” and “unconstitutional.”
Bharat Ramamurti, an unofficial economic adviser to the Harris campaign, defended the Biden-Harris plan, but the hosts remained unconvinced. Quick compared the proposal to “pulling forward the taxes that would be paid later when someone sells the stock.” Ramamurti argued that taxing unrealized gains is similar to property taxes, which many people are already paying.
According to a report from The Wall Street Journal, Harris supports Biden’s initiative to increase taxes, which includes a 25% levy on unrealized capital gains for individuals with a net worth over $100 million. Additionally, the corporate tax rate would rise from 21% to 28%. Ramamurti explained that property taxes essentially function as a tax on unrealized gains, but the CNBC hosts argued that property taxes are more like a “use tax” for funding schools.
However, Ramamurti countered that the revenue from taxing unrealized gains would benefit the broader U.S. economy. It is worth noting that if the Biden-Harris proposal passes, the crypto asset sector would be negatively impacted, as wallets holding Bitcoin and other altcoins for a long time would have to pay higher taxes.
Interestingly, former President Donald Trump, who is the primary Republican candidate for the 2024 elections, has been a vocal supporter of cryptocurrencies, advocating for their widespread adoption during his campaign speeches. The upcoming election is expected to be a tight race, with Polymarkets placing the chances of Trump winning at 50% and Harris at 49%.
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