Kamala Harris
Andrea Austria / Media Matters | Photo credit: Gage Skidmore

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Right-wing media spread misinformation about Harris campaign tax proposal that would impact only the wealthiest Americans

Harris proposed an unrealized capital gains tax provision that would impact only certain American households worth more than $100 million

Written by Pete Tsipis & Reed McMaster

Published

During the Democratic National Convention, Vice President Kamala Harris’ presidential campaign told multiple outlets that she would support a provision — which was included in the Biden-Harris administration’s federal budget proposal — to tax unrealized capital gains of the ultrawealthy. The policy would affect only those with $100 million or more in tradable assets. 

In response, right-wing media repeatedly and falsely claimed that the proposal would actually impact everyday Americans, retirees, and independent businesses and that it could severely damage the economy.

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  • The Harris campaign has signaled support for a tax on the ultra-wealthy

    • The Biden administration proposed, and Harris said she would support, at least a 25% income tax on certain people with over $100 million in assets that include unrealized capital gains. Harris reiterated her support for a provision included in the administration's proposed budget for the 2025 fiscal year, which would apply only to wealth held by high-net-worth households. Unrealized capital gains are increases in the value of an asset that has not yet been sold, like a company, stock, or property. Currently, unrealized gains are not taxed. [Axios, 8/23/24; Investopedia, 6/9/24]
    • The proposed tax on unrealized gains would apply only to those who have 80% of their $100 million-plus wealth in tradable assets (i.e. stocks). Axios’ Dan Primack wrote, “Within that $100 million club, you'd only pay taxes on unrealized capital gains if at least 80% of your wealth is in tradeable assets (i.e., not shares of private startups or real estate). One caveat for this illiquid group is that there would be a deferred tax of up to 10% on unrealized capital gains upon exit.” [Axios, 8/23/24]
       

  • Right-wing media are pushing misinformation about the policy and who it would affect

    • Daily Wire co-founder Ben Shapiro claimed that a 25% tax on unrealized capital gains would bankrupt “half the companies in existence.” Shapiro called the policy proposal “psychotic” and “insane,” but he failed to mention that the policy would apply only to those worth more than $100 million with 80% in tradable assets. [The Daily Wire, The Ben Shapiro Show, 8/21/24; Media Matters, 8/21/24]
    • Fox host Sean Hannity falsely claimed on his radio show that anyone with a 401(k) would have to pay new taxes on unrealized capital gains. He argued, “if you think inflation is bad, that's inflation in perpetuity. ‘Oh, but we're not gonna tax people that make under $400,000 a year.’ Well, apparently, if you have a 401(k) or retirement account of any kind, guess what? You're gonna pay taxes on unrealized capital gains. … She wants to raise the capital gains tax to an enormous rate.” (Someone making $400,000 is earning 250 times less than the tax threshold for this unrealized capital gains provision.) [Premiere Radio Networks, The Sean Hannity Show, 8/23/24]
    • Fox Business host Dagen McDowell said the proposed tax on unrealized gains would involve “punishing business creation” and falsely claimed it would “starve startups” even though it wouldn’t apply to shares of privately owned startups. She added, “They don’t like anything they are not in control of. They are politicians, and so if they can’t control you, they will destroy you.” [Fox Business, The Big Money Show, 8/22/24]
    • Fox host Jesse Watters suggested the unrealized capital gains tax would affect all stock portfolios, when it would actually impact only the portfolios of hundred-millionaires. He stated, “Kamala did kind of play footsie with a new policy today. She said she wants to raise taxes. She said she wants to raise capital gains taxes. And then she says she wants a wealth tax. She wants to tax unrealized gains, which means if your portfolio goes up, and you don’t sell, you just hold it, she wants to tax that.” [Fox News, Jesse Watters Primetime, 8/20/24]
    • Fox Business host Maria Bartiromo claimed taxing unrealized capital gains at 25% would trickle down and impact the middle class. She stated, “You’ve got to zero-in on some of these taxes that Kamala Harris is backing. Like 44.6% capital gains tax. I mean, what is that going to do to the economy and the markets, you know? Or a 25% tax on unrealized gains. And of course, taking the corporate tax rate up to 28%. You know, she talks about cutting taxes for the middle class, but all of this trickles down. And when you’re talking about a 25% tax on unrealized gains, people need to understand what that means. That's not just about the stock market.” [Fox Business, Mornings with Maria, 8/23/24]
    • Hannity falsely claimed that any American with a retirement plan would have to pay new taxes on unrealized capital gains. He stated, “Look at the tax policy tonight. … If you have a 401(k), if you have a retirement plan of any kind, and you have unrealized capital gains, they will tax those, and they’re not going to ask if you’re making $400,000 a year. Now, reality check, most Americans that work for a living, that don’t make anywhere near $400,000 a year, that means they’re going to get taxed.” Hannity seems to be confusing or conflating standard taxes with Harris' new proposal, which would affect only extremely wealthy households. [Fox News, Hannity, 8/22/24; Investopedia, 8/20/24]
    • Fox host Greg Gutfeld repeatedly called the taxation of unrealized gains code for “theft” and fearmongered about the policy being turned on poor people, even though the policy is targeted at the rich. He ranted, “So a tax on unrealized gains is taxing money you don't have. And it goes right to the government. So to sell a corrupt, immoral idea, you've got to call it something else, so you call it — instead of ‘theft,’ it’s ‘unrealized gains.’ … So an unrealized gain is the house that your parents live in. … If it does gain in value, 25 to 50% of that increase goes to the IRS every year.” He continued. “They’re gonna say, ‘But we're only going to do this to really rich people,’ but as you know sooner or later, we run out of really rich people, then it’s rich people, then it’s not so rich people, then it’s poor people.” [Fox News, The Five, 8/21/24]
    • Newsmax host Bob Sellers claimed that the tax proposal would only initially target the ultra-rich before being used to go after real estate. He claimed, “Now, it isn't necessarily going to affect you or me. They're talking about the ultimate – the ultra-rich. Yeah. That's what they're saying now. But once they get that concept through, they'll start looking more and more. And say, ‘Well, you know, you haven't sold your house. It's worth an awful lot. There's a lot of wealth in there.’ And I'm not saying that's what they're going to do. But once you take that step, it's a slippery slope.” [Newsmax, The Record with Greta Van Susteren, 8/22/24]
       

  • Right-wing media demonized Harris’ tax policies by calling them “wealth confiscation,” “communism,” and “full-scale socialism” and fearmongering that they would lead to economic turmoil like a stock market crash

    • Fox Business host Stuart Varney called Harris’ tax proposals “full-scale socialism.” He stated, “I say she has been listening to Bernie Sanders, who last night delivered a full-throated roar for socialism. All of the above that you just mentioned, which is now Kamala Harris’ policy, that’s exactly what Bernie Sanders wants. You’ve got a drift here to full-scale socialism.” [Fox Business, Mornings with Maria, 8/21/24]
    • Hannity attacked Kamala’s tax policies, arguing they’re basically “wealth confiscation.” He claimed, “She wants to tax small business. She wants to tax corporations. She wants to put a tax pretty much on anything. She wants a wealth tax. She is open to a 70 to 80% top marginal tax rate. She wants to tax capital gains. She wants to tax unrealized capital gains. She wants to raise the estate tax. Well, basically, it's wealth confiscation, but she's gonna need every penny of it, and it still won't be enough if she wants her $93 trillion Green New Deal ever passed.” [Premiere Radio Networks, The Sean Hannity Show, 8/19/24]
    • Turning Point USA founder Charlie Kirk called the proposal “communist” and said the tax on capital gains “is a recipe for a stock market crash.” He stated, “This is communist. … Taxing unrealized gains would force investors to sell off assets to cover their tax bills, hurting long term investments and economic growth. This is a recipe for a stock market crash.” [Rumble, The Charlie Kirk Show, 8/21/24] 
    • Former presidential candidate Vivek Ramaswamy claimed the policy is part of “a formula for Great Depression.” He stated, “Lay out Kamala in her own words, including in her presidential campaign, what she stood for, single payer health care all the way to taxes on unrealized capital gains, it’s a formula for Great Depression. Yes, remind the American voters of that.” [Fox News, Hannity, 8/19/24]