Kamala Harris's Proposed 25% Tax on Unrealized Gains: Could It Trigger Economic Instability?

Imagine this scenario: You invest $53,000 in the stock market, and your portfolio grows to $77,000. Under Kamala Harris's new proposal, you'd be taxed on the $22,000 increase—without having sold any of your stocks. Now, what if those same stocks plummet to $47,000 the following year? You’d still owe taxes on gains that no longer exist. Such a policy could lead to panic selling, creating volatility in the markets and potentially driving the economy into a downturn.

What are your thoughts on this plan? Could taxing unrealized gains lead to negative consequences for both investors and the overall market?

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