Mark Cuban Says Kamala Harris’s Unrealized Gains Tax Would ‘Kill the Stock Market’

Billionaire investor Mark Cuban strongly criticized Vice President Kamala Harris’s position on taxing unrealized capital gains, suggesting that such a policy would have dire consequences for the stock market.

Speaking on CNBC’s “Squawk Box,” Cuban argued that while Harris has not outright rejected President Biden’s proposal to tax unrealized gains, it is unlikely to be implemented under her leadership.

During the interview, Cuban said that taxing unrealized gains would “kill the stock market,” emphasizing that it could lead to severe volatility for public companies. “If you tax unrealized gains, you’re going to kill the stock market, and it’s going to be the ultimate employment plan for private equity because companies are not going to go public because you can get whipsawed,” he explained. Cuban, a frequent commentator on economic policy, stated that he regularly communicates with Harris’s campaign to offer advice on economic issues.

Drawing from his experience as an entrepreneur, Cuban noted that taxing unrealized gains could place a significant burden on those with high equity but limited liquidity. “My personal experience back from the internet days, all of a sudden… my net worth was enormous, but the number of dollars in the bank wasn’t enormous,” he said. He warned that such a tax would force individuals to borrow against their assets to pay the tax bill, which could hamper their ability to operate their businesses effectively.

Harris’s campaign has supported the Biden administration’s tax plans, including a proposed 25% tax on unrealized capital gains for individuals with more than $100 million in wealth. However, Cuban suggested that this policy might serve more as a negotiating position than a firm commitment. “What I told them is if you tax unrealized gains, you’re going to kill the stock market,” Cuban stated, while noting that Harris’s campaign sees the Biden plan as a “starting point” rather than an “ending point.”

CNBC host Rebecca Quick pressed Cuban on why Harris has not addressed concerns over the proposal. She questioned whether the campaign was providing different messages to different audiences. “My guess is that they’re telling anybody who is donating to them exactly what they want to hear at this point. What matters is what they say publicly and what they will stick to,” Quick remarked. Cuban disagreed, asserting, “No, no, no, no, no, no. Absolutely, positively not.”

Cuban suggested that the issue of taxing unrealized gains is not a priority for Harris because it affects a small portion of the electorate. “This is not [a] number one priority for her,” he said. “She wanted to talk about entrepreneurs, startups, founders first. The people like me in my position, we’re not at the top of the list.”

Harris’s campaign’s lack of clarity has drawn criticism from various commentators and voters. Earlier in the week, CNBC hosts debated the legality and potential consequences of taxing unrealized gains with Bharat Ramamurti, an informal economic adviser to Harris’s campaign. Reports suggest the Biden-Harris proposal could generate substantial revenue, but Cuban and others have raised concerns over its potential impact on investment and economic growth. Harris’s party has not issued a response to these critiques yet.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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