Billionaire investor Howard Marks said Treasury Secretary nominee Janet Yellen’s proposal taxing unrealized capital gains is not practical, reports CNBC. Marks, the co-chairman and co-founder of Oaktree Capital, said Yellen’s plan would hurt sentiment among investors.
- The proposal to tax wealthy investors on those yet-to-be realized gains was initially raised by Senator Ron Wyden, D-Oregon, who will likely become chairman of the Senate Finance Committee.
- Yellen’s proposal backing the unrealized capital gains tax raised eyebrows among some senators and Wall Street investors.
- Marks question the practicality of taxing unrealized capital gains every year and whether investors will get a refund if the asset prices fall.
- Mark, nonetheless, agrees there is a need to save the economy following Yellen’s remarks calling the lawmakers to “act big.”
Unrealized capital gains refer to the theoretical increase in value of assets that an investor is holding onto.