- Kamala Harris previously pledged support for taxing unrealized gains.
- Harris has since backtracked.
- Mark Cuban doubts such a tax would ever fly.
Crypto taxation is already complex, with hurdles like identifying taxable events and keeping track of numerous transactions, especially for traders making frequent daily moves.
Concerns deepened when President Biden’s 2025 fiscal budget, strongly supported by Kamala Harris, proposed taxing unrealized gains. But despite the uproar, Democratic ally Mark Cuban remains confident this plan won’t see the light of day under a Harris-led administration.
Mark Cuban Puts His Foot Down
Despite Harris’ earlier backing of taxing unrealized gains, she seems to have shifted her stance since becoming the Democratic presidential candidate. However, the proposal continues to be linked to her platform, raising concerns among critics .
Sponsored
In a recent CNBC interview, Cuban dismissed the idea entirely, saying an unrealized gains tax is “absolutely not going to happen.”
The billionaire investor didn’t mince words, adding that if Harris reversed her position, he would actively campaign against her to prevent a second term.
Meanwhile, Donald Trump, speaking at a rally in Latrobe, Pennsylvania, over the weekend, labeled unrealized gains tax as “communism” and assured voters that Republicans would never implement such a policy.
Unrealized Gains Tax Makes No Sense
Biden’s 2025 fiscal budget introduced several measures , including tax cuts for families and efforts to boost housing supply. However, the most contentious proposal was a 25% unrealized gains tax targeting individuals with a net worth exceeding $100 million.
While this would only affect a small group of ultra-wealthy individuals, there are legitimate concerns that, if ratified in law, the $100 million threshold could be lowered over time, eventually impacting a broader range of taxpayers.
Unrealized gains tax remains unpopular as paper gains don’t reflect actual income, making the policy deeply unfair.
Entrepreneur Mark Avery shared his concerns about its potential impact on the crypto market, warning that such a tax would force crypto investors to sell off assets to cover the tax, increasing market volatility, and scaring off new investors and VC firms.
Avery posited this would ultimately slow digital asset adoption and drive innovation overseas.
On the Flipside
- Democrats traditionally favor wealth redistribution policies.
- The Laffer Curve suggests there’s a point at which higher taxes lead to lower tax revenue.
- Cuban’s estimated net worth is $5.7 billion, making him a target for Biden’s unrealized gains tax proposal.
Why This Matters
While Cuban’s stance offers temporary relief to crypto holders, the fierce debate over unrealized gains taxation has revealed a fundamental divide in the Democratic party.
Polymarket bettors call a Trump election victory.
Trump Widens Polymarket Lead on Harris, but Betting Pattern Raises Eyebrows
Bitcoin’s strong run of form appears to be pulling retail investors back.
Bitcoin’s 32% Rally Draws Retail Investors Back
