Kamala Harris supports a tax on unrealized capital gains as part of the Biden administration’s fiscal policies, targeting the wealthiest Americans. This proposal, introduced in the 2025 budget, would apply a minimum 25% tax rate on unrealized gains for individuals with over $100 million in net assets. The policy is framed as a “billionaire minimum tax” designed to address wealth inequality by ensuring that the ultra-wealthy, who often see their wealth grow through asset appreciation rather than salaries, pay a more substantial tax rate on their total income.

Critics argue that taxing unrealized gains is complex, could disincentivize investment, and may impose burdensome compliance requirements. It would also require the IRS to implement new reporting systems to monitor the wealth of these individuals yearly. Proponents argue it could help address tax disparities, as the ultra-wealthy currently may pay lower effective tax rates than many middle-income households due to reliance on asset-based wealth growth rather than income subject to traditional tax rates   .