Boiling Frogs and Overton Windows

What crazy new tax 'ideas' really mean for you

Welcome back - I know this week was supposed to be a follow-up part 2 to the very popular ‘Finding Success at your W2’ post, but there was a twitter uproar that I had being a brain worm and seemed more timely to do now. Next week will see part 2.

In case you missed it, the headline news is Kamala Harris just threw her weight behind a previously floated tax increase:

• 44.6% capital gains tax

• 25% tax on unrealized gains

• Increase corporate tax rate to 28% from 21%

(Don’t worry, more details on the headline numbers below)

Now, if I had to make a bet, do I think taxes would jump up to these levels and a new tax (like the tax on unrealized, as in assets you don’t sell) will go into effect as proposed?

No.

But in some ways, the fact they wouldn’t immediately go in at full force may be actually the worst case scenario.

It all boils down (pun intended) to the Overton Window and Boiling Frog Syndrome - which is far more insidious.

So what does it all mean?