The DNC is well into it's second day as Kamala Harris gets set to officially accept her nomination as the presidential candidate being put forth by the party. As the convention drags on the economic policies Kamala Harris plans to attempt enact if elected are being slow dripped to the American people, and they are absolutely laughable. Particularly if you believe that it is important to make sure people are incentivized to wake up in the morning and exert their energy on doing productive things that bring goods and services to individuals around the country.

The focus of her plan to increase tax revenues is to increase long-term capital gains taxes to levels never seen before in the United States; 45%. Essentially guaranteeing that the combination of state and federal taxes in most states would take more than half of the profits investors earned when they eventually sell their investments for cash. This is almost double what the current long-term capital gains tax rate is.

To make matters worse, Harris also wants to tax the unrealized capital gains of anyone who is worth more than $100m dollars.

The long-term realized capital gains tax increase is obviously bad policy that would stifle innovation in the country due to the fact that few people would be incentivized to invest in anything considering the fact that the government will take more than half the gains created by your risk taking. Levying a tax on gains that have not yet been realized is utterly insane. It is so insane that the only logical conclusion that one can come to when something like this is proposed is that the person proposing it is actively trying to destroy the economy.

Imagine the founder of a successful startup that just raised a Series A round at a $300m valuation and he or she still owns one third of the company. A company that raised a pre-seed round at a $5m valuation. If this law were to get put into place their "on paper" net worth would be $100m and they'd be on the hook for paying a 25% tax on the unrealized gains they've made from building a successful company. The problem is they still only pay themself a modest salary of $300,000 and haven't had a liquidity event in the form of an acquisition or public listing yet. Let's say he or she owned 80% of their company after the pre-seed round and had no other savings, investments or equity in other companies. Their paper net worth at the time was $4m. After the Series A round they'd be worth $100m with a $96m unrealized gain on the equity they still own in their company. Kamala Harris expects this founder to come up with $24m in cash to fork over to the government.

For practically all startup founders that's not going to be possible unless they sell 25% of their remaining stake in the company at the Series A valuation in a secondary deal (which often involve the person selling secondary shares doing so at a discount to the previous valuation). At which point they'd also have to pay a 45% realized capital gains tax. So in reality this founder would need to sell 50% of their remaining stake in the company they poured their heart into to pay unrealized cap gains taxes for that year.

Put simply, this tax would make it functionally impossible for people to create successful businesses because they would get taxed out of the game as soon as their company achieves breakout success. They would have no incentive to keep building. Under this tax plan the government would be making it legal to rob founders of their life's work.

This is but one example. We haven't even broached the subject of the stock portfolios of ultra high net worth individuals, which is the type of person Kamala Harris and the Marxists running her administration wants you to think this policy is targeted at. Or the fact that we live under a fiat system that is highly dependent over the long-run on a rapidly expanding monetary base that gets flooded into financial assets and driving their prices up as a result. Making it so unrealized gains will materialize consistently over time.

If this policy were to ever see the light of day capital would flee from the United States faster than Kamala breaks out in nervous laughter when asked a 201 level question on any subject. Just look at what happened to Norway after they pushed an unrealized tax on their citizens.

The fact that something so idiotic is even being floated by a presidential candidate in 2024 is mind boggling. There are people that are in positions of power as it pertains to policy decisions who can't take a step back, think for five minutes, and realize these obvious disastrous secondary effects. Or maybe they can and they simply do not care because their goal isn't to ensure that the United States prospers. Their goal is to usher in overt Marxism that attempts to eliminate all wealth within our borders.

Considering the fact that Kamala Harris' father was an avowed Marxist professor and that Kamala herself was considered the most radically left leaning Senator while she held the position, it may be time to call a spade a spade and recognize that the Marxists have successfully infiltrated the highest levels of political office in the United States. And when we're done calling a spade a spade we should act in haste to remove these people from their positions as quickly as humanly possible before they get the chance to turn us into Venezuela. These policies will start with the "ultra rich" and they will eventually be thrust on the lower rungs of the economic ladder as they fail miserably. This is what they mean when they say "trickle down economics".

Make no mistake, Kamala is just the tip of the iceberg. She didn't come up with these policies by herself. There is an army of foxes in the hen house. The border isn't an isolated problem. The country has been infiltrated in more ways than one.

Final thought...

Taking a red eye across the Atlantic and don't think I'm going to sleep a wink.