St. Paul, Minnesota (Fox 9) – Taxes are a hot topic in the presidential campaign, but if you get your information from social media, there’s a good chance it’s misleading.

What we know

The taxation of unrealized capital gains is currently the big issue.

This is a tax on the increasing value of things you own, such as real estate, before you sell them and make a profit.

Viral social media posts raise alarm that Kamala Harris plans to tax unrealized capital gains.

In most cases, the theme is the same: “If the value of your home goes up, you have to pay this tax.”

But for 99.9972% of Americans, that simply isn’t true.

“Right now, it’s only for people who have assets over $100 million,” said Dr. Christopher Phelan, an economics professor at the University of Minnesota.

Phelan’s “for now” could be important.

The Vice President has not yet released a tax plan, but her campaign team says she supports President Biden’s proposal.

It would have included a tax on unrealized capital gains for the first time, but only for the super-rich.

Phelan says this may be a tricky issue.

“In some ways, it has to be that way, because there just aren’t that many,” he said. “Even though these people are incredibly wealthy, there aren’t that many of them.”

In fact, there are less than 10,000.

Different plans

At campaign events, Vice President and Governor Tim Walz often talk about how to lower the cost of living, particularly in grocery stores and home purchases.

“The voters who are really up for grabs are those who have felt the impact of inflation and the economy,” said Mark Penn, a former Clinton adviser. “That’s why Harris will address the economy as quickly as possible.”

An analysis of competing budget proposals by Penn Wharton University shows that Trump’s budget proposal would increase the federal deficit by $5.8 trillion over the next decade, while Harris’ proposal calls for an increase of $1.2 trillion.

At the heart of his plan are tax cuts, especially for top earners and corporations.

Their proposal includes tax relief for parents and low-income earners.

He would earn some revenue through tariffs.

In addition, there are higher tax burdens for the rich and corporations, which Phelan says could backfire.

“If our corporate tax rate differs compared to other countries, we have seen Medtronic move to Ireland,” he said.

There is one point of agreement, however: Both candidates have proposed taxing tips in some form. However, Phelan agrees with most economists and says this makes absolutely no sense.