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President Biden’s proposal to tax unrealized gains for high-net-worth individuals, was highlighted by the Supreme Court’s specific ruling on repatriated profits.
The Supreme Court’s Ruling on Repatriated Profits and the Future of Unrealized Gains
In March, President Biden proposed taxing the value increase of assets for individuals with over $100 million meaning investors would pay taxes on unsold assets. Though it faces challenges in Congress, this could change how investments are viewed as current taxes only apply to sold assets.
In June, the Supreme Court’s decision in Moore v. United States highlighted the debate on taxing unrealized gains. The Court upheld a tax on repatriated profits but noted this ruling was specific to that case. This leaves the broader issue of taxing unrealized gains unresolved keeping investors and policymakers attentive, according to the report of Kiplinger.
READ ALSO: Tax-Free America: A Recipe For Economic Disaster Or A Boost To The Bottom Line?
(PHOTO: Seeking Alpha)
Supporting Business Growth and Financial Stability – Why a Thoughtful Approach to Tax Policy Matters
Critics argue that taxing unrealized gains is unfair and could force asset sales to cover taxes, hindering growth and innovation. With the U.S. dealing with high debt and interest payments and many believe reducing spending should be prioritized over new taxes to maintain economic stability and avoid slowing economic progress.
Opponents of taxing unrealized gains argue it could prompt early asset sales and hinder long-term investments. They stress creating a supportive environment for businesses and individuals is free from excessive taxes and crucial amid economic challenges like high national debt. This highlights the importance of thoughtful tax policies that support economic growth and financial stability in the United States.
