Kamala’s Tax Plan Could Spark Another Great Depression Warns Ramaswamy

Entrepreneur and political commentator Vivek Ramaswamy issued a stark warning on Thursday, stating that Vice President Kamala Harris’ proposed tax hikes could plunge the U.S. into a second Great Depression. Speaking at a Trump campaign event, Ramaswamy specifically targeted Harris' push for a tax on unrealized capital gains, which he argued could trigger a catastrophic collapse in asset prices.

The concept of taxing unrealized capital gains is as reckless as it sounds. Under Harris' proposal, Americans would be forced to pay taxes on the increased value of their assets—whether they’ve sold them or not. This could include anything from stocks to real estate, businesses, and other property. The problem? The tax bill comes due regardless of whether an actual profit has been realized.

Ramaswamy outlined a chilling scenario where investors, property owners, and small business entrepreneurs would be compelled to sell off assets to cover their tax obligations. "You don’t want to sell, but you’re forced to sell because you have to pay the tax out of pocket," Ramaswamy explained. "But it turns out you won’t be the only person required to do that. Somebody else will be required to do that, too, but they’ll have to do it at a lower price because you already sold, and your sale drove down the price of the asset."

The result? A vicious cycle where falling asset prices force more and more sales, leading to further depreciation in value. According to Ramaswamy, this could easily spiral into an economic depression, affecting millions of Americans, particularly those without the financial cushion to absorb such shocks.

Key Takeaways:

• The proposed tax on unrealized capital gains would tax the increase in asset value, regardless of whether the asset is sold.

• Ramaswamy warns that this could force premature sales of assets, triggering a collapse in asset prices.

• The burden would fall hardest on small business owners and less-wealthy investors without enough liquid assets to pay the tax.

Ramaswamy also highlighted that Harris’ economic agenda is a continuation of the Biden administration’s policies, which have already saddled Americans with significant financial burdens. According to one estimate, the average American could face an additional $47,000 in regulatory costs over their lifetime due to Biden’s policies. Ramaswamy didn’t mince words, arguing that Harris’ policies are borrowed from Democratic hardliners like Bernie Sanders and Elizabeth Warren, and would only exacerbate economic disparities.

“I respect the likes of Elizabeth Warren and Bernie Sanders more than I respect Kamala Harris,” Ramaswamy said, in a scathing critique. “The only thing worse than somebody who believes the wrong thing is somebody who advances the wrong policies while actually believing nothing at all. And I think that’s what we’re getting with Kamala Harris today.”

As 2024 approaches, voters should take a hard look at the disastrous economic implications of Harris’ tax proposals. The risk is real, and the stakes couldn't be higher.

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