"Moments, springtime, Eiffel Tower... Funny taxis, kids at play." "Azure-te" as performed by George Shearing and Nat King Cole
A new proposal calls for unrealized investment gains to be taxed annually, based on how much they've grown in value each year. Investment gains are currently taxed only when assets are sold, so if enacted, this proposal would mark a major departure from the methods currently used to tax wealth. The burden on investors, and the negative impact on markets, would be significant.
A dollar earned through investing has traditionally been taxed preferably to a dollar earned through employment income. Additionally, the gains on investment appreciation remain untaxed until the asset is sold. The new proposal would not only eliminate this unrealized “carry,” it would tax those paper gains at ordinary income tax rates which cap out at 37%, not at lower capital gains rates.