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Silicon Valley’s elite rattled by prospect of tax on unrealised gains

Democratic proposal faces long odds but has nevertheless alarmed ultra-wealthy venture capitalists, entrepreneurs and investors

A novel proposal to tax the unrealised gains of wealthy Americans has incited fury from Silicon Valley’s richest investors.

US vice-president Kamala Harris, the Democratic nominee for the 2024 presidential election, rolled out a tax plan last week aimed at raising nearly $5tn over a decade. It included support for the controversial tax proposal, which was also part of President Joe Biden’s federal budget plan for 2025.

Under the plan, people with more than $100mn in wealth would pay taxes of at least 25 per cent on a combination of their income and their unrealised capital gains — the value of the appreciation in the assets they own, which include stocks, bonds, real estate and other assets such as investments in start-up companies.

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