This is

this is CBS I on the world. I'm John Bachelor. I welcome Joseph Sternberg,

member of the editorial board of the Wall State Journal. He's in London.

He writes political economics and he's done us all the favor of

publishing a column which enforces what you've assumed is going to happen in the event of labor taking command of the tax base in the United Kingdom

and the Democratic Party taking command of the tax base in the US. That is not

your labor taxing, taxing your labor income, but taxing your investments. And I don't

think it's limited to investment income. I think it's investments investments but I have to check with Joe

a very good evening to you taxing investments means realized and

unrealized explain the difference please good evening to you hey John well I mean the big story that we're talking about here is that the tax man in the

form of you know liberal politicians Democrats in America labor in the UK, increasingly is interested in capital.

You know, remember, historically the tax code has been biased in favor of taxing labor, you know, in the form of the income tax on people's wages and salaries, the, you know, payroll tax that also taxes labor income, and there's always been capital taxation we're talking about

income from capital like dividends or interest and then also appreciation of capital in terms of the capital gains tax.

And the issue is that increasingly you have all of these politicians on the left that are getting more and more interested in this form of tax on capital. on of taxes that we already have. So the Labor Party in the UK is talking about

increasing the capital gains tax and also the inheritance tax which

especially in Britain is a form of tax on capital.

In the US, Kamala Harris is talking about some really steep increases in the rate of tax on capital gains,

you know, which would bring that tax rate up

to some of the highest levels that we've seen since the 70s.

And then also getting more creative about the tax base. And I think that in the

US, this is taking the form of discussion about taxing unrealized capital gains. So traditionally, in order for you to be taxed on a capital gain, which is the amount the stock has gone up in value while you've owned it, you have to sell it. So you have to sell it so you have to realize the the gain and then you can say here's

what I bought it for and then here's what I sold it for and so here's the difference

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