Mark Cuban: Harris’ Unrealized Gains Tax Won’t Happen

Mark Cuban threatens to pull support for Harris over controversial unrealized gains tax proposal.

Kamala Harris smiling for the camera with a Bitcoin brioche the wrong way around on her blazer.
Created by Gabor Kovacs from DailyCoin
  • Kamala Harris previously pledged support for taxing unrealized gains.
  • Harris has since backtracked.
  • Mark Cuban doubts such a tax would ever fly.

Crypto taxation is already complex, with hurdles like identifying taxable events and keeping track of numerous transactions, especially for traders making frequent daily moves.

Concerns deepened when President Bidenโ€™s 2025 fiscal budget, strongly supported by Kamala Harris, proposed taxing unrealized gains. But despite the uproar, Democratic ally Mark Cuban remains confident this plan wonโ€™t see the light of day under a Harris-led administration.

Mark Cuban Puts His Foot Down

Despite Harrisโ€™ earlier backing of taxing unrealized gains, she seems to have shifted her stance since becoming the Democratic presidential candidate. However, the proposal continues to be linked to her platform, raising concerns among critics.

Sponsored

In a recent CNBC interview, Cuban dismissed the idea entirely, saying an unrealized gains tax is “absolutely not going to happen.” 

The billionaire investor didnโ€™t mince words, adding that if Harris reversed her position, he would actively campaign against her to prevent a second term.

Meanwhile, Donald Trump, speaking at a rally in Latrobe, Pennsylvania, over the weekend, labeled unrealized gains tax as “communism” and assured voters that Republicans would never implement such a policy.

Unrealized Gains Tax Makes No Sense

Bidenโ€™s 2025 fiscal budget introduced several measures, including tax cuts for families and efforts to boost housing supply. However, the most contentious proposal was a 25% unrealized gains tax targeting individuals with a net worth exceeding $100 million.

While this would only affect a small group of ultra-wealthy individuals, there are legitimate concerns that, if ratified in law, the $100 million threshold could be lowered over time, eventually impacting a broader range of taxpayers. 

Unrealized gains tax remains unpopular as paper gains donโ€™t reflect actual income, making the policy deeply unfair.

Entrepreneur Mark Avery shared his concerns about its potential impact on the crypto market, warning that such a tax would force crypto investors to sell off assets to cover the tax, increasing market volatility, and scaring off new investors and VC firms.

Avery posited this would ultimately slow digital asset adoption and drive innovation overseas.

On the Flipside

  • Democrats traditionally favor wealth redistribution policies.
  • The Laffer Curve suggests there’s a point at which higher taxes lead to lower tax revenue.
  • Cuban’s estimated net worth is $5.7 billion, making him a target for Bidenโ€™s unrealized gains tax proposal.

Why This Matters

While Cuban’s stance offers temporary relief to crypto holders, the fierce debate over unrealized gains taxation has revealed a fundamental divide in the Democratic party.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a reporter at DailyCoin covering market affairs. Samuel's has holdings in Bitcoin and Cardano, with other minor holdings across the market.

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