This week, social media was abuzz with false claims that presidential candidate Kamala Harris supports President Joe Biden’s proposal for a 25% tax on unrealized capital gains in 2025. This caused significant outrage among crypto investors.
Origins of the Rumors
Rumors spread on the X platform that Kamala Harris endorsed a 25% tax on unrealized capital gains, originally proposed by President Joe Biden for 2025. This led to a massive outcry among users, who believed that all crypto investors would be subjected to this tax regardless of their net worth.
Clarifying Harris and Biden's Tax Proposals
Actually, Harris' team released her economic plan, which includes raising the corporate tax rate. This proposal was previously put forward by the Biden administration but does not include support for a tax on unrealized capital gains. The 25% minimum tax on total income, including unrealized gains, was proposed in Biden's document and targets ultra-wealthy individuals with more than $100 million in wealth.
Public Reaction and Conclusion
Rumors about Harris’ support for a new tax led to extensive discussions on social media, despite these claims being unfounded. Harris' economic plan involves raising the corporate tax rate but does not support a tax on unrealized capital gains. This misunderstanding caused significant concern among crypto investors, even though the proposed tax would affect only a very limited group of ultra-wealthy individuals.
In summary, the debates around Biden and Harris’ tax proposals underscore the importance of accurate information and the dangers of spreading rumors. Biden's proposed unrealized capital gains tax targets only ultra-wealthy individuals and was not endorsed by Harris.
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