Simon, will "unrealized gains" also include brokerage accounts?
If so, can you imagine being taxed on that nice stock you picked 10 years ago that is now worth 10x of what you paid for it, but of course, have not yet sold it because you are waiting for a good time for you personally to do so?
With this "unrealized gains" nonsense, they could tax you on the 9x "gain" of up to 20% (both long term and short term capital gains will also go up if the Democrats have their way).
https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates
What happens if after they tax you and you pay your tax, then the stock goes down? Do you get a credit back?
Example: purchase stock for $10,000. It eventually is worth $100,000 (Market Value). Dems come in and tax you 10% on your so-called $90,000 "gain" and take $18,000 from you. How do you pay for that? You haven't even sold it yet, so where does the money come from to even pay it, that is, if you don't have a nice savings or other liquid account to tap into to pay the tax to begin with.
Anyway, while you are struggling to pay your tax, the stock goes down in Market value the next year to $50,000 and you sell you position, with a stop loss to stop the bleeding and to take your earnings. Your real, actual "gain" was only $40,000 and so you should owe only $9,000 in long term capital gains.
But, you have already paid (or are trying to pay) out $18,000 to the Dems the year before. So what now?
Same goes for Cryptocurrency? How does the IRS even KNOW what I have in my Bitcoin wallet?
This is not communism. This is total fiscal idiocy. Even the communists did not try to tax people on money they have not yet made because they were smart enough to know that having equity on paper does not always translate to actual earnings.