The Unintended Consequences Of Taxing Unrealized Gains

In case you missed it, a $5 trillion tax hike looms over American households and businesses in President Joe Biden’s latest budget proposal, which would include a 25% annual minimum tax on unrealized capital gains for individuals with incomes and assets exceeding $100 million.

If signed into law, this would increase the top marginal rate on long-term gains and dividends to a jaw-dropping 44.6%, marking the highest such rate in U.S. history.


Biden’s plan proposes other changes to the tax code, but I want to focus on the part involving unrealized gains since it could have sweeping unintended consequences for the U.S. economy, personal liberty and the very fabric of American innovation.

To be clear, I don’t believe a deeply divided Congress would be able to find the votes necessary to approve this policy, but it’s crucial that people are at least aware of the potential ramifications.