Democrat presidential candidate Kamala Harris has confirmed her support for $5 trillion in tax increases over 10 years in the Biden-Harris administration’s proposed budget. What should be truly terrifying to any taxpayer is the fact that the total increase is not the worst thing about Harris’ plan.
Among the many and varied tax hikes Harris and running mate Tim Walz endorse is a big increase in the top tax rate on capital gains. “[T]he proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent,” an explanation of the Biden-Harris budget states. The top tax rate on capital gains held for more than a year is currently 20 percent, for those with taxable income above $518,000. The tax is paid only if the individual sells the assets.
Capital gains taxes are not indexed for inflation, so the tax bite will rise dramatically whenever the Federal Reserve increases the money supply to cover the rapidly rising U.S. government debt, which is inevitable under all believable current scenarios. People will be paying real taxes on imaginary increases in capital gains. That extra tax cost will lower the value of the affected assets. If you own stocks, land, or other valuables, the Harris-Walz tax hike will reduce their value.
Even more egregiously, “The Harris-endorsed budget calls for an annual 25 percent minimum tax on the unrealized gains of individuals with income and assets exceeding $100 million,” Americans for Tax Reform notes. “Once in place, it won’t be long before the threshold
