WATCH: CNBC Host Laughs At Harris Economic Advisor Pushing 'Insane' Tax Proposal On Unrealized Capital Gains

On Wednesday, Vice President Kamala Harris' economic advisor, Bharat Rama, joined CNBC to discuss the Democratic presidential candidate's proposal to tax unrealized capital gains at 25 percent, an unprecedented tax proposal that economists have described as "insane." During the discussion, Rama attempted to argue that the 25 percent tax on high earners is similar to property taxes, but the CNBC hosts didn't take that as a justification.

"Taxing unrealized gains just doesn't seem fair in any sense of the word. In the very best sense, if you were taxing unrealized gains, all you are doing is pulling forward the taxes that would be paid later when somebody actually sells the stock," CNBC host Rebecca Quick said.

"I think that this reaction to unrealized gains is a little funny because I bet that the majority of people watching right now are already paying a tax on unrealized gains. It's called property tax," Rama said as CNBC host Joe Kernan repeated "property tax" in a depressed tone. "When the value of your home goes up, you pay higher taxes even if you don't sell your home."

"It's tiring. It's not the same. That's always the go-to," Kernan said with his co-host adding, "It's a use tax because you're paying for schools, and the value of your home never moves the way that a stock moves. Property tax is a use tax. You're paying for schools. You're paying for emergency services. Those are things that make absolute sense."

Rama then argued that the taxes proposed in Harris' plan, including the unrealized capital gains tax, would be used to create her so-called "opportunity economy." "But it's not a use tax for the people who are actually using the services," Quick interjected. Kernan then stated that the move would likely be unconstitutional and wouldn't happen in his or his co-host's lifetime. 

Heritage Foundation economist E.J. Antoni described the Harris tax plan's provision to tax unrealized capital gains at 25 percent for individuals making over $100 million as "beyond insane," according to Fox News. "This proposal by Harris' handlers would literally force people to sell off a portion of their investments every year in order to pay the taxes due on unrealized gains. Until an asset is actually sold, any increase in value is purely speculative. It isn't real, hence the classification of unrealized. The people pushing this idea are demonstrating their complete and total ignorance of both finance and economics."

NEW: CNBC host Joe Kernen rolls his eyes and laughs after Harris’ economic advisor Bharat Rama tries arguing in favor of Harris’ unrealized capital gains tax.

Rama sat in silence as the hosts poked fun after he tried saying that property tax was an unrealized gains tax.

“It’s… pic.twitter.com/lK4jGL6phz

— Collin Rugg (@CollinRugg) August 28, 2024

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