Billionaire Mark Cuban has raised concerns over a proposed tax on unrealized capital gains during an interview on CNBC, suggesting it could have disastrous effects on the stock market.

While discussing Vice President Kamala Harris' position in support of the plan, which he says would effectively kill the stock market, Cuban expressed confidence that it will not actually be implemented if she is elected, as Fox Business reports.

In the interview, Cuban warned that the tax plan, if enacted, could discourage companies from going public and destabilize the stock market. He noted that such a tax would be detrimental to businesses and echoed his belief that the Harris administration would not pursue it if Harris became president.

Cuban reflected on his experience during the early days of his internet ventures, emphasizing the impracticality of taxing unrealized gains. "My net worth was enormous, but the amount of money I had in the bank wasn’t," Cuban said, explaining that he would have had to borrow money just to pay a tax bill based on gains that hadn't yet materialized.

Cuban Believes Harris Won't Implement Tax

The conversation turned toward Harris' stance on the proposal. Cuban, who maintains regular contact with Harris' campaign, reiterated his disagreement with the concept of taxing unrealized gains.

However, he insisted that such a tax is not a priority for Harris and is unlikely to be enacted if she assumes office. He explained that the Biden administration's tax plan is being used as a "starting point" for discussions but does not reflect Harris' full intentions.

During the interview, CNBC host Rebecca Quick questioned Cuban on why Harris has not publicly addressed concerns about the proposal. She also raised the possibility that the campaign could be giving different messages to different donors. Quick pressed Cuban to explain why he believed Harris' messaging to him was reliable, given the lack of public clarity.

Quick Questions Harris' Tax Messaging

"Who knows what they’re telling other people?" Quick remarked, raising concerns that the Harris campaign may be telling different things to different groups. Quick urged Harris to clarify her stance publicly, suggesting that doing so would allow voters to hold her accountable.

Cuban, however, dismissed these concerns, maintaining that he trusted the messaging he had received from the campaign. He downplayed the significance of the issue, stating that it affects only "less than 1%" of voters and is not a high priority for Harris at the moment.

Despite Cuban's assurances, reports from major publications such as the Wall Street Journal and the New York Times have indicated that the Harris-Walz campaign supports a tax increase on unrealized capital gains. According to these reports, the campaign favors a 25% tax on unrealized gains for individuals with a net worth exceeding $100 million, alongside a proposed increase in the corporate tax rate from 21% to 28%.

$800 Billion in Projected Revenue

The tax proposals in question are part of a larger effort to generate nearly $800 billion in new government revenue. However, Cuban argued that implementing such a tax could have the opposite effect, ultimately harming the economy rather than bolstering it.

Reflecting on his own experiences, Cuban warned that entrepreneurs and startups could be disproportionately impacted by a tax on unrealized gains. He expressed concern that businesses would be forced to borrow money just to cover tax liabilities based on paper profits, potentially leading to financial strain.

Harris Campaign Remains Silent

Notably, the Harris-Walz campaign has yet to publicly address the specific concerns raised about the unrealized gains tax. When Fox News Digital reached out for comment, the campaign did not respond.

Cuban emphasized that the Harris campaign's focus remains on broader issues of fair taxation and economic reform. He expressed confidence that the campaign would prioritize policies that promote growth for startups and entrepreneurs, rather than targeting unrealized gains.

Constitutional Questions Remain

Earlier in the week, CNBC hosts clashed with an informal economic adviser to the Harris campaign over the constitutionality of taxing unrealized gains. The legality of such a measure remains an ongoing debate, with critics arguing that it could face significant legal challenges if pursued.

Cuban acknowledged that these legal questions are valid but reiterated his belief that the proposal is unlikely to move forward under a Harris administration.

Conclusion

In the wake of the interview, Cuban's comments have sparked further debate over the feasibility and fairness of taxing unrealized capital gains.

While the Harris-Walz campaign has been linked to proposals that would increase taxes on wealthy individuals and corporations, Cuban remains confident that the unrealized gains tax will not be implemented.

However, the ongoing lack of public clarity from the Harris campaign continues to fuel speculation about the administration's true intentions.