Here’s what Harris’ plan to tax unrealized investment gains means for the wealthiest Americans
As Vice President Kamala Harris outlines her economic agenda, the Democratic presidential nominee has called for higher taxes on wealthy Americans and corporations — although experts say one of her plans is unlikely to gain traction.
Harris in August endorsed the tax increases proposed by President Joe Biden in his fiscal year 2025 budget. One of the proposals is a 25% minimum tax on total income, including so-called “unrealized gains,” or asset growth, exceeding $100 million. This is known as the billionaire minimum tax.
As of June 2023, there were 10,660 centi-millionaires, or people with at least $100 million in assets, living in the U.S., according to a report from Henley & Partners, a wealth and migration advisory firm. The report used data from New World Wealth.
“It’s just not right that those who can most afford it are often paying a lower tax rate than our teachers and our nurses and our firefighters,” Harris said at a campaign event Wednesday in New Hampshire. “That’s why I support a billionaire minimum tax and corporations paying their fair share.”
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If the billionaire minimum tax is enacted, taxpayers with wealth above the $100 million threshold would have to report unrealized gains for each asset class annually, including the basis, or original purchase price, and market value as of Dec. 31, according to the U.S. Department of the Treasury. They would also report total liabilities.
Currently, investors incur capital gains taxes of 0%, 15% or 20% after selling a profitable asset owned for more than one year. Plus, there’s an extra 3.8% net investment income tax for higher earners.