On Wednesday’s episode of CNN’s “Laura Coates Live,” CNN Economics and Political Commentator Catherine Rampell,
also a Washington Post columnist and PBS NewsHour Special Correspondent, expressed skepticism about Vice President Kamala Harris' proposal to tax unrealized capital gains, calling it “administratively unworkable.”
Rampell acknowledged existing flaws and inequalities within the capital gains tax system, explaining, “If you’re wealthy, you can leave your assets to your heirs, and the gains accumulated over your lifetime are essentially erased through a mechanism called the step-up basis. As a result, appreciated assets—whether a stock portfolio, art collection, or other investments—can go untaxed indefinitely, which I see as a significant problem.”
While the proposal Harris endorses aims to address this by taxing unrealized gains, Rampell clarified that this idea originated with the Biden administration. She argued, “The idea of taxing gains as they accrue, even if the assets are never sold, or the owner doesn’t pass away, would likely be administratively unworkable.”
Rampell concluded by offering alternative solutions: “I think there are more practical ways to tackle this issue, such as eliminating the step-up basis, where someone’s death triggers a realization event for taxation. While technical, this would address the loopholes that allow many wealthy individuals to legally avoid paying taxes on the money they've made over the years.
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2024 Election ,Clips Politicscapital gains , tax Catherine , Rampell ,Kamala Harris