Why is this shocking? Surely if you hadn’t grown up with the very technical idea of unrealized gains, this would seem totally normal. The surprising thing is that we let ourselves be convinced in the past that making money with money should be tax advantaged compared to making money with labor.

Unrealized gains are gains.

Yes.

Say you have €80k in investments. Markets go up, in one year time your investments are worth €90k. You did not sell.

That means you had €10k in unrealized capital gains. Subtract the €1800 per person threshold. €8200, 36% tax is €2952 tax to be paid at the start of the year.

Losses give you tax credits redeemable against future capital gains (not against income tax from employment)

It's every bit as stupid as it sounds, and IMHO it's probably why we have Donald Trump in the White House today. Harris started talking about taxing unrealized capital gains almost immediately after she was nominated, and that's when the billionaires -- including the ones that own all the media outlets -- started switching sides.

Brought to you by the same party of self-defeating geniuses who thought they could win elections in Texas on a gun-control platform.