edupunkbitch

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For the love of everything, please vote. This blog will return to a better mix of topics after the US election. For my lovely followers who don't vote in US elections, I am sorry. Very soon, this blog will again be a place for angry posts and reblogs, rants, off-topic rambling, and just general rabble rousing. I swear. Probably a lot. I'm an adult. “I am not beautiful but I could be.” - Emily Palermo

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Atax Proposalembraced By Vice President Kamala Harris Thats Meant To Target The Wealthy Is Getting Attention

Yahoo Finance

Ignore social media. Here’s what Harris’ unrealized capital gains tax proposal means for you

A tax proposal embraced by Vice President Kamala Harris that’s meant to target the wealthy is getting attention in an unlikely place for won

A tax proposal embraced by Vice President Kamala Harris that’s meant to target the wealthy is getting attention in an unlikely place for wonky policy debate: social media.

But many posts ignore the fact that the plan would only impact those whose net worth is more than $100 million, or less than 1% of taxpayers, and falsely suggest that all homeowners should fear a new massive tax bill. One TikTok user, for example, claimed that people will “lose their homes” and that “the IRS will bankrupt them.”

At issue is a proposal often referred to as a billionaire minimum tax. It would treat the increase in the value of assets – like real estate, stocks and private businesses – as taxable income each year, even if they are not sold. This is known as an unrealized capital gain.

One way to think of it is as a tax on a gain, or profit, that exists only on paper.

“It’s quite a transformational proposal,” said Mark Friedlich, vice president of government affairs at Wolters Kluwer Tax & Accounting.

On the campaign trail, Harris has said she supports a billionaire minimum tax. She hasn’t outlined the specifics, but the Biden-Harris administration’s most recent budget proposal lays out details.

A billionaire minimum tax is one of several proposals pushed by Democrats in recent years to tax the rich. Both President Joe Biden and Harris have consistently said that they want to make the “wealthiest Americans pay their fair share” and that the additional tax revenue raised could be used to pay for social spending programs, like helping families pay for child care or down-payment help for first-time homebuyers.