Newly-inaugurated President Biden is likely to take office and push for a flurry of new legislation. Yet while all eyes will be on Biden’s proposals for COVID-19 relief, healthcare policy, and undoing the 2017 tax reform law, two other dangerous ideas are flying under the radar.
The first of these is a proposal to implement a so-called “mark-to-market” regime for taxing unrealized capital gains. Currently, taxpayers pay tax only on “realized” capital gains — in other words, when the asset is sold and you bank a profit. Though its on-paper value might fluctuate during ownership, only when an asset like stock in a publicly-traded company is sold is the taxpayer liable for tax on the realized capital gain.
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