Vice President Kamala Harris’s proposal to tax unrealized capital gains has become a hot topic in the national discourse, igniting passionate debate on both sides of the aisle. While billionaire Mark Cuban might be right in suggesting, “It’s not going to happen,” there’s still a compelling case for why it should.
Taxing unrealized capital gains – essentially the increase in value of investments that have not yet been sold – is an idea that goes to the heart of economic fairness and equity. Wealth in America has become increasingly concentrated at the top, and this concentration is often fueled by assets that appreciate without ever being taxed. For the wealthiest among us, this means billions of dollars in accumulated value can remain untouched by the tax system, despite adding to their immense wealth year after year. Meanwhile, middle-class families see a far larger proportion of their income taxed, often leaving them struggling to get by.
Consider what such a tax could do. The revenues from taxing unrealized gains could fund policies that support working families – the very policies that Vice President Harris champions, such as assisting first-time homebuyers and addressing the skyrocketing costs of childcare. These initiatives are not just altruistic; they are sound economic policy. Investing in families ensures a stronger, more stable workforce, which in turn strengthens the overall economy.
The typical American family dreams of owning a home, yet for many, this dream is slipping out of reach. A tax on the unrealized gains of the ultra-wealthy could provide down payment assistance programs, making homeownership a reality for countless first-time buyers. Similarly, the prohibitive cost of childcare is often a barrier for parents, particularly mothers, to fully participate in the workforce. Funding from a wealth tax could subsidize childcare costs, ensuring that more parents can work, contribute to the economy, and build better futures for their families.
Mark Cuban might be right when he says it’s unlikely this tax will come to fruition in the current political climate. He cites conversations with Harris’s team, indicating that “it’s not going to happen.” But let’s be clear: That doesn’t mean it shouldn’t. The pushback from billionaires and their allies is predictable, but we must not let their voices drown out the needs of everyday Americans. If we want an economy that works for everyone – not just the wealthiest – then bold, transformative ideas like taxing unrealized capital gains need to be on the table.
Vice President Harris’s willingness to consider such measures is a step in the right direction, even if it’s not a policy that’s going to happen tomorrow. It’s a conversation that’s long overdue, and it signals a broader shift toward policies that genuinely address the needs of working Americans. Whether or not this specific tax becomes reality, the spirit behind it – the idea that our tax system should be fair and just – is something we should all get behind.
By focusing on policies that uplift the middle class, Vice President Harris is addressing the root causes of inequality. It’s a stance that should be applauded, encouraged, and, most importantly, supported by concrete actions, even if those actions challenge the status quo. After all, progress has never been about what’s easy – it’s about what’s right.