Source: Foundation for Economic Education
by Peter Jacobsen
“The Harris campaign has recently revived the Democrat talking point of taxing unrealized capital gains. In simple terms, an unrealized capital gains tax would tax owners of stocks when those stocks appreciate in value, even if the stocks have not been sold. The policy is strange. When someone sells his stocks, he is subject to a tax for the income he receives on the sale. Before he sells the stock, he has not realized any ‘gain’ in value because if the stock market falls the next day, all of those supposed gains would disappear. … one major argument used to silence opponents of the policy is the claim that ‘it will only affect billionaires, so you shouldn’t care about it anyways!’ … Unrealized capital gains taxes may start by targeting the ultra-rich, but they will eventually target you.” (10/03/24)
https://fee.org/articles/unrealized-capital-gains-taxes-will-trickle-down-to-the-middle-class/