The hosts of CNBC’s “Squawk Box” clashed with Bharat Ramamurti, an informal economic adviser on Vice President Kamala Harris’ campaign, over the Biden-Harris proposal that would tax unrealized capital gains, which the hosts argued was likely “unfair” and “unconstitutional.”
Hosts Rebecca Quick and Joe Kernen pressed Rama on the proposal, which Quick deemed unreasonable because it would be “pulling forward the taxes that would be paid later when someone sells the stock.”
Reports from The Wall Street Journal and The New York Times have said that Harris supports the tax increases put forth by Biden in his recent budget proposal. This, according to Harris’ campaign, includes a 25% tax on unrealized capital gains for individuals with more than $100 million in wealth, and an increased corporate tax rate from 21% to 28%.
“I think that this reaction to unrealized gains is a little funny, given that I bet that the majority of people watching right now are already paying a tax on unrealized gains. It’s called a property tax,” Ramamurti told the hosts.
‘BEYOND INSANE’: ECONOMISTS SLAM BIDEN-HARRIS PROPOSAL TO TAX UNREALIZED INVESTMENT RETURNS
Quick and Kernen quickly disagreed, as they noted that property taxes were a “use tax” because they’re used for schools.
Ramamurti argued that when the value of a person’s home goes up, they pay higher taxes even if they choose not to sell their home.
“Your value of your home never moves the way a stock moves, the way something else moves that you don’t sell. It’s also, property tax is a use tax. You’re paying for the schools, you’re paying for the emergency services. Those are things that make absolute sense,” Quick shot back.
Ramamurti insisted Harris’ plan and the revenue coming from the unrealized gains tax would provide more opportunity for Americans.
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“It’s not a use tax for the people who are actually using the services,” Quick said.
Kernen added, “it’s probably unconstitutional,” before joking that it likely wouldn’t happen in Quick’s lifetime.
Overall, the unrealized gains tax, along with the substantial capital gains tax increase, are projected to lead to nearly $800 billion in new government revenue, according to a Peter G. Peterson Foundation analysis.
Fox News’ Kristen Altus contributed to this report.
