Vice President Kamala Harris has aligned herself with President Joe Biden’s tax proposals, including a controversial tax on unrealized capital gains, as she campaigns for the presidency in 2024. Harris’s tax policies, experts told MarketWatch, closely mirror those of Biden.

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Reports indicate that Harris supports Biden’s March budget proposal, which includes new taxes on wealthy Americans, corporations, and business owners. A key component is taxing unrealized capital gains — paper profits from assets that have increased in value but haven’t been sold — as income for those with wealth exceeding $100 million.

The Treasury Department has defended this proposal, stating it would impose a 25% minimum tax on total income, including unrealized capital gains, for individuals with over $100 million in wealth. Officials argue that the current tax code disproportionately benefits the wealthy, allowing them a lower effective tax rate than many lower- and middle-income taxpayers. They claim this approach exacerbates income and wealth disparities and encourages inefficient investment practices.

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However, the proposal has sparked significant criticism. Siri Terjesen, a professor at Florida Atlantic University’s College of Business, described the tax on unrealized gains as “among the worst ideas” in Biden’s budget. Terjesen warned it could act as a “kill switch” for entrepreneurship by discouraging investment and draining capital.

Republican politicians have also opposed the idea, with GOP Senate candidate Kari Lake arguing that it would “cripple innovation and economic growth.” Conversely, the Institute on Taxation and Economic Policy, a left-leaning think tank, supports taxing unrealized gains, arguing that the current tax code is too lenient on the wealthy.

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Harris’s campaign has suggested that her tax policy should be gauged by Biden’s recent budget, rather than her earlier positions. Harris is expected to address these issues during her acceptance speech at the Democratic National Convention in Chicago.

Read more at MarketWatch.