Kamala Harris is backing a tax plan that’s got a lot of rich people freaking out. The Biden administration wants to start taxing unrealized gains. What’s that? Basically, it’s a tax on money you haven’t even pocketed yet.
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Let’s say your stock or crypto goes up in value, but you don’t sell. Normally, no taxes, right? But under this plan, you’d pay taxes on those gains anyway.
The reaction from the business world, especially the Trump supporters, has been loud and clear. They see this as a direct attack on wealth.
Elon Musk, for example, took to X (what used to be Twitter) and threw a jab, warning this plan could lead to “bread lines & ugly shoes.”
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What exactly is Kamala proposing?
Alright, let’s break this down. The tax is aimed squarely at the ultra-wealthy. The goal? Raise money for Kamala’s “opportunity economy” stuff—think things like child tax credits and housing subsidies. It’s all part of a broader Biden administration push to make the rich pay more.
But getting this through Congress? That’s going to be a tough battle. Even if Kamala gets a big win in the elections, Capitol Hill isn’t going to just roll over and say, “Sure, let’s do it.”
If you’re holding onto Bitcoin, Ethereum, or any other cryptocurrency, and it’s been going up in value, you might need to start worrying. This tax could mean coughing up money on gains you haven’t even cashed out yet.
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Imagine holding onto your crypto, watching it go up, and then having to pay a fat tax bill without selling a single coin. That’s what this could mean. We’re talking about a potential 25% tax on unrealized gains.
And if you’re deep into crypto, this could change how you play the game. Some might decide to sell off their assets to avoid getting hit with a future tax bill.
Others might hold on tight, hoping for even bigger gains down the road, but still facing the tax consequences.
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To make matters worse, this could make the crypto market even more volatile. You know how it goes—big news hits, and everyone starts buying or selling like crazy. We could see a lot of that if people start panicking about new taxes.
