The Kamala Harris plan to tax 'unrealized gains' would crash the American economy

An unrealized earning tax is an Orwellian concept and it serves as the ultimate government power grab.

This week, the Kamala Harris campaign unsurprisingly endorsed the Biden-Harris administration’s fiscal year 2025 budget, which stands to increase taxes by at least $5 trillion over the next decade.

The most controversial idea within the hyper-progressive shakedown plan is an annual 25 percent *minimum* tax on “unrealized gains” of individuals with income and assets that exceed $100 million, according to Americans For Tax Reform.

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As with all new taxes, that number will almost certainly come down to envelop much of society.

America’s original federal income tax only applied to less than one percent of all households. It now applies to almost three-quarters of the country.

But even if we put aside the inevitable, an unrealized gains tax on America’s wealthiest citizens would result in absolute disaster.

An unrealized gain is a positive change in the value of a stock, bond, or any asset of value that you have purchased but not yet sold. This would potentially apply to assets like your home, any collectors items, your gold stash, your bitcoin holdings, the stocks in your brokerage account, and many other equities.

The government is here to reallocate your possessions!

Even if you believe that a Harris Administration would only tax the “super rich,” the cascading effects of forcing all these people to sell off their "unrealized" assets will crash the economy, destroy innovation, and lead those targeted by the government to flee the country.

There are roughly 10,000 Americans whose wealth crosses over that $100 million threshold. And here’s how this tax would “trickle down” to lower tax brackets:

Say you’re Elon Musk or Larry Ellison, who both happen to be GOP voters, who are less likely to find a magic Democrat carve out or loophole to avoid the pain of an unrealized gains tax.

Musk owns over 20% of Tesla’s shares outstanding. Ellison owns 42% of Oracle’s outstanding stock. Should these men be hit with a 25% annual tax on their unrealized gains, they could be forced to dump tens of billions of dollars onto the market on a yearly basis.

An annual large sale of shares of this magnitude would cause all retail investor boats to sink, and for Tesla and Oracle investors to witness a sharp decline in the value of their holdings.

The sell-off caused by the government initiative would harm the respective companies’ overall market value, cutting into their profit margins and threatening the jobs of the 140,000 Tesla employees and 160,000 Oracle employees. Surely, it would force company leadership to consider relocating to a different country with a more hospitable business environment, which would further jeopardize American jobs.

More broadly, the annual sell-off would also destroy investor confidence in the value of U.S. “free” markets, leaving Americans with few tools to fend off the inflation behemoth that government policy caused.

Sure, an unrealized gains tax may only impact 10,000 people (at first), but that alone is enough to crash the U.S. economy and harm all Americans.

An unrealized earning tax is an Orwellian concept and it serves as the ultimate government power grab. It would involve selectively raiding the possessions of the White House’s political opponents. Allies of the political establishment would surely get a carve-out, while perceived enemies would get shaken down.

The Supreme Court is currently reviewing the constitutionality of such a concept. Let’s hope they strike it down and take a potential instrument to detonate the American economy out of the hands of Kamala Harris and her allies in Congress.