Taxing Unrealized Capital Gains

Lots of folks have seen the value of certain capital assets rise significantly over the past couple of years. One of the reasons my 401k has done so well is that several of the mutual funds in that portfolio have positions in companies such as Tesla, SpaceX, and Apple. I haven’t become a billionaire, but I’ve been along for the ride.

So now, the some of the more economically-challenged on the Left are proposing a “wealth tax” as a way of funding the Build Back Better scam. I saw a tweet this morning suggesting that because Elon Musk had seen his stock portfolio rise $36 billion recently, he should be hit with an $8 billion dollar tax bill. Musk seems to be a very savvy enough businessman. I doubt he keeps that kind of cash on hand. I’ll bet he’d have to sell a substantial part of his holdings in order pay up.

That leads to these questions—

If he dumped a large chunk his stock in companies like Tesla and SpaceX, wouldn’t that cause a drop in the prices of those stocks? Supply would suddenly exceed demand in the stock market. What could happen to my 401k? If it suffers an unrealized capital loss, should I get a tax rebate?

If he had to sell so much stock that he lost control of the companies, would the new owners keep him? If not, would they be as well run? Would the value of the holdings in my 401k be further depressed. How many jobs might be lost if the companies’ are as well run?

If destroying the businesses run by one of the richest men on the planet would only provide $8 billion (less than 0.25 % of the $3.5 trillion advertised price of Build Back Better), are the enough other fortunes that could be raped to fund the scam? And with so many business trashed and jobs lost, what would happen to income tax revenue?

Inquiring minds want to know.

1 thought on “Taxing Unrealized Capital Gains


  1. “Inquiring minds want to know.”

    Which rules out the Democrats, who actively do not want to know the answers to any such questions, because the answers would portray their policy in a bad light.

Leave a Reply