Democrats appear to have thrown in the towel on their plan to tax unrealized capital gains.
The tax, which was blasted as total “insanity,” was expected to hit earners with $1 billion in assets or $100 million in income for three consecutive years, The Wall Street Journal reported in October.
At the time, Treasury Secretary Janet Yellen said the plan “would help get at capital gains, which are an extraordinarily large part of the incomes of the wealthiest individuals, and right now escape taxation, until they’re realized, and often they’re unrealized in the death benefit from a so-called step up of basis.”
The Heritage Foundation said the proposal was likely “an unconstitutional wealth tax,” which, if passed, could force Treasury “to spend trillions of dollars without an adequate source of funding.”