Well, fortunately, common sense prevailed.
It was confirmed that Democrats have put the kibosh on a proposal to slap a tax on “unrealized capital gains.”
This was meant to generate revenue for President Joe Biden’s $2 trillion social and climate change bill.
From CNBC:
Almost all households (98%) in the top 10% have some sort of unrealized gains, according to most recent Federal Reserve data, from 2019. Those gains may be from assets like a home, vacation property, business, stocks and mutual funds.
By comparison, about 40% of families in the bottom 20% have unsold, appreciated assets.
And the value of their unrealized gains differs significantly — about $100,000 for the bottom 20% versus $1.7 million for the top 10%, on average, according to the Federal Reserve.
The top 1% gained more than $6.5 trillion in corporate stock and mutual fund wealth during the pandemic-era market boom, according to the latest data from the Federal Reserve. The bottom 90% added $1.2 trillion.
Unrealized capital gains are also concentrated among white households, according to the Institute on Taxation and Economic Policy, a left-leaning think tank.
About 89% of gains over $2 million are held by such households, versus 1% each for Black and Hispanic families, according to the group’s analysis of Federal Reserve data.
Wealthy households don’t necessarily need to sell appreciated assets to fund their lifestyles. For example, they can borrow against their investments to avoid selling them and paying income tax on gains.
Confiscating money that has yet been realized.
Only in Washington…
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