Some ideas are like horror movie villains. They’re dangerous, and no matter how many times they’re defeated, they never seem to die.
The misguided idea of taxing unrealized capital gains is back on the scene. Sen. Ron Wyden, D-Ore., floated a proposal to tax unrealized capital gains in 2021.
It was widely debated in 2022, when Congress was considering a multitrillion-dollar tax and spending package.
Opposition from Sen. Joe Manchin, D-W.Va., to taxing income before it’s earned helped defeat the idea then.
But the idea was far from dead. President Joe Biden included a version of the tax in his latest budget.
Vice President Kamala Harris also has endorsed the idea.
The first step in killing a bad idea is to recognize it for the scourge it is.
A realized capital gain—which we currently tax—is the difference between the price you sold an asset for…
