Democratic Rep. Ro Khanna of California slammed a proposal backed by Vice President Kamala Harris to tax unrealized capital gains during an appearance on CNBC on Wednesday.
Harris supports a 25% tax rate on unrealized capital gains over $100 million, which is similar to a proposal made by Biden at the White House on March 11. Fact Sheet, According to Khanna told NBC News that Harris' proposal would likely lead to the assets being sold to private equity firms. (Related: Scarborough says Trump should 'worry about capitalists,' ignores Kamala's price gouging suggestion)
“Let me tell you why I don't think a flat tax on unrealized gains is a good thing. So, let's say you're an entrepreneur and you start a company and it's worth $100 million or $200 million on paper,” Khanna said. “If you tax that, then maybe that person will be forced to sell the company. Maybe to private equity. Do you really want an entrepreneur to sell their company to a bigger institution and have it depreciate in value? I don't think that's a situation we need in the startup ecosystem.”
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'This is not the right way to do it': Harris rep criticizes tax proposal she supports on CNBC pic.twitter.com/E4iBqlP9DO
— Daily Caller (@DailyCaller) September 4, 2024
“Squawk Box” co-host Joe Curnen pointed out that such a proposal wouldn't do any harm to someone like Amazon co-founder Jeff Bezos.
“I think this whole policy is inflammatory. They're going after people with billions of dollars in assets while saying they pay less tax than a maid,” Curnen said.
“I understand the reasons, but this is not the right way to do things, and it discourages people from investing in startups because 95 percent of investments in startups fail,” Khanna said. “But I think what we can go after is this: When people see that their capital starts to appreciate, instead of realizing that, they take out what I call backdoor realization loans to cover their living expenses. They don't pay taxes on that loan. And when they die, they pass that money on to their heirs, and their kids don't pay taxes on that loan either.”
The proposal to tax potential gains from asset sales Explained SmartAsset.com is a “wealth tax” explain The company positions itself as “an online destination for consumer-focused financial information and advice.” (Related article: Charles Payne says Kamala Harris' corporate tax hike plan will “make life harder for workers”)
Harris would also raise the corporate tax rate from 21% to 28%, which is similar to a March 7 White House proposal. Fact SheetNBC News ReportedThe Vice President also Suggested The FTC will allow grocers to impose “severe penalties” for “price gouging” on August 16th. speech Regarding economic policy.
Harris did not immediately respond to a request for comment from the Daily Caller News Foundation.
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