REMINDER: Kamala is this stupid. The evidence is overwhelming.

She has proposed a 25% tax on UNREALIZED CAPITAL GAINS. Allow me to explain what that means. It will destroy middle class Americans by demanding money they do not have to pay the IRS.

People who don’t work in finance tend to roll their eyes when tax policy comes up. Politicians love it when we get bored by policy proposals, because it means they can do whatever they want to us, no matter how bad it is.

Cackles’s team in August rolled out one more insane proposal. Here is the snippet from

David Blackmon

, wherein he quotes some guy I don’t know.

Dear Kamala Harris was rolling out yet another overtly communist plank to her personal political platform:

That’s right: In addition to jacking up the tax on long-term capital gains to an economy-destroying 45%, she wants to levy a 25% tax on such capital gains that haven’t even been taken by investors. That, friends, is communism in action, and that is Dear Kamala’s very essence as the well-indoctrinated daughter of not one, but two parental Marxist professors.

Hooboy.

Let’s leave aside the stupidity of a 45% tax on capital gains (which is the difference between when you buy an asset and when you sell it, ignoring things like inflation which is another tool the Left loves to use to turn us into slaves.) So if you buy a share of stock for $100 on Monday and sell it on Friday for $200, you’ve made a capital gain of $100. Cackles thinks you should give $45 of that $100 profit to the government in taxes.

Dumb enough, but here is the real stupidity. She wants you to pay the government 25% of theoretical capital gains, otherwise called unrealized gains. The reason those gains are “unrealized” is because they are all on paper and could disappear. Say you bought the same $100 of stock on Monday. You hold onto it, instead of selling it. It is worth $200 a few days later. On Friday, Cackles wants the IRS to call you and say, “You have an unrealized gain of $100. Please send us a check for $25.”

But hold on, you say, I don’t have the $25 because I have not sold the stock.

Too bad, says the IRS, as they begin the process of taking your house away from you to pay off your unrealized capital gains tax bill.

Even worse, the IRS will pick an arbitrary point in time to calculate your “unrealized gains.” In our example, they chose Friday when the stock was worth $200. They have sent you the bill for the $25 tax payment. But on the following Tuesday, the stock drops to $50 per share. That is $50 below the price you paid for it. But the IRS still wants the $25 because that was the Cackles Tax due when they decided your profit was $100.

All you did was buy a share of stock for $100. Now you have a $75 loss. $50 is gone (unrealized) from the stock price dropping and $25 is gone because of the insane stupidity of Cackles pretending to understand taxation in a rational, fair, rule of law society such as we barely have now, and which will be gone if we let them steal this election for this clown and Comrade “I went to Communist China 30 times on a teacher’s salary” Walz.

Let’s say you’re a public-school teacher. Your salary - according to the median reported by the National Education Association is $68,500. Here is a highly plausible scenario, with figures taken from national databases.

Salary: $68,500

Income taxes: $14,100

After tax net income: $54,400

Average annual cost of living for a single person in US: $38,300

Free cash after living expenses, no vacations or extras: $16,100

So far, so good. Now let’s look at investment decisions made. Let’s say you have been working for 10 years. Every month, you have put $500 into a mutual fund account, which has grown at 6% per year for that time. I am going to keep this really simple, assuming a monthly rate of return on principal in the account at 6%/12 = 0.5% per month. Also I am assuming no income taxes paid, because the point of this example is not mutual fund accounting but the impact of this proposed new unrealized capital gains tax Cackles has proposed.

Annual free cash after expenses and mutual fund contributions: $10,100

Fund value after 10 years: $81,940.

Since mutual funds have variable returns, let’s say the month after the new Cackles Tax comes into law, the fund managers at your mutual fund get really, really lucky and the fund experiences a 75% gain in one year, as opposed to its usual 6%.

You are delighted!

Your new fund account value: $143,395.

AWESOME!

You don’t sell the mutual fund shares, because you are a long-term investor.

But wait. There’s more.

The new Cackles Tax on Unrealized Capital Gains is 25%.

You owe the IRS: $15,364 = ($143,395 - $81,940) x 25%

What?! You have $10,100 available this year after taxes and expenses. The IRS says you owe them an additional $15,365 for the Cackles Tax. You don’t have the cash for that, because you have not sold or “realized” the profits from your mutual fund shares.

That inherently unfair insanity is why we don’t tax unrealized gains.

The Democrats want this idiot to be President? What has gone wrong with this country? That is not politics - that is stupidity.

Vote accordingly.