Misconceptions About Taxing Unrealized Gains

There is a push to tax unrealized capital gains, claiming it would generate significant revenue. However, economic historian Phil Magnus argues that the underlying math behind these revenue projections is flawed. The debate stems from the idea that taxing unrealized gains on assets, like stock portfolios, would benefit the country financially. This approach faces criticism for its impracticality, especially in scenarios where assets are illiquid and taxing unrealized gains could lead to forced asset liquidations.