Kamala Harris’s economic adviser Bharat Rama was pilloried by CNBC’s “Squawk Box” hosts over her campaign’s proposal to tax unrealized capital gains.
“Taxing unrealized gains just doesn’t seem fair in any sense of the word,” co-host Rebecca Quick told Rama on Wednesday. “In the very best sense, if you were taxing unrealized gains, all you’re doing is pulling forward the taxes that would be paid later when someone actually sells the stock.”
CNBC: “Taxing UNREALIZED gains just doesn’t seem fair in any sense…”
Harris economic advisor Bharat Ramamurti: “This reaction to unrealized gains is a little funny.”
(Kamala’s 25% minimum tax on unrealized capital gains is just one of the trillions in tax hikes she supports) pic.twitter.com/jnGNK23ST0
— RNC Research (@RNCResearch) August 28, 2024
Rama responded that the pushback against the proposal is “a little funny,” claiming people are already paying a tax on unrealized gains through property taxes.
His explanation was immediately torn apart by Quick and co-host Joe Kernen, who noted that property tax is a use tax, which is essentially a conditional sales tax.
“It’s a use tax. It pays for schools,” Quick said as Rama attempted to talk over her. “Your value of your home never moves the way a stock moves, the way something else moves. Property tax is a use tax, you’re paying for the schools, you’re paying for emergency services, those are things that make absolute sense.”
Kernen piled on, saying, “It’s tiring. It’s not the same. That’s always the go-to answer.”
Rama insisted that “all the revenue” from taxes on unrealized capital gains are going to go to “more opportunity.”
“It’s to make sure that every newborn in this country get $6,000–” he said before Quick cut in.
“But it’s not a use tax for people actually using those services,” Quick said.
Rama replied, “You’re arguing that this is some foreign concept that’s completely unknown–“
Kernen broke in, “It’s probably unconstitutional.”
Quick added, “It’s not income. It’s not an income tax.”
Kernen concluded, “It’s never gonna happen…probably.”
The Harris campaign’s proposal for a 25% minimum tax on unrealized capital gains is part of a $5 trillion tax plan unveiled this week that also includes a “wealth tax” on households with over $100 million and a 44.6% tax on capital gains and qualified dividends first put forward by the Biden administration in April for its 2025 budget proposal.