08/29/2024
This is a long read but we need to be aware of this. The unrealized gains tax that Kamala Harris wants to enact should scare every lower middle-class person to death. If you don't know what this is, let me explain. Let's say your house is worthy $100,000 this year but next year it is valued at $150,000. You didn't sell it but the valuation went up. Under her plan you have to pay 25% tax on the $50,000 increase. That means you would owe an extra $12,500 in federal taxes. Do you have that much money laying around? I don't even have a fraction of that. This also applies to stocks you own. Let's say you own stock in Digital Illusion Rentals that is valued at $1000, and we have a really good year, and it goes up to $20,000. You would owe $4,750 in federal tax. Now let's say that I break a leg and can't deliver any chairs to weddings and the stock crashes to $100. That means that you have lost $900 on the original investment but you went in the hole another $4750 because of the federal tax. The kicker is if it goes up to $1000 again you would owe another $225 in federal tax. Meaning you paid $1000 to own stock but have paid $4995 into the federal government without making a single cent on the stock. This is madness and would have people selling their homes, cars, and property in order to pay taxes.
