CNBC hosts and Harris campaign economic adviser clash over unrealized gains tax proposal: 'Unconstitutional'

The hosts of CNBC's "Squawk Box" disagreed with Bharat Ramamurti, an informal economic adviser on Vice President Kamala Harris' campaign, about the fairness and constitutionality of the Biden-Harris proposal to tax unrealized capital gains.

Rebecca Quick and Joe Kernen questioned Rama about the proposal, which Rebecca deemed unreasonable because it would advance taxes that would be paid later when someone sells the stock.

According to reports from The Wall Street Journal and The New York Times, Harris supports the tax increases proposed by Biden in his recent budget plan, including a 25% tax on unrealized capital gains for individuals with more than $100 million in wealth and an increased corporate tax rate from 21% to 28%.

Ramamurti found it amusing that the reaction to unrealized gains was a little off, considering that most people watching were already paying taxes on such gains. He explained that this was known as a property tax.

Property taxes are used for schools, so Quick and Kernen quickly disagreed.

Even if they decide not to sell their home, individuals still pay higher taxes when the value of their property increases, according to Ramamurti.

Your home's value doesn't fluctuate like a stock, and it's not something you can sell. Additionally, property tax is a use tax, which funds things like schools and emergency services, making perfect sense.

Harris' plan, as well as the revenue generated from unrealized gains tax, would offer more chances for Americans, as Ramamurti emphasized.

Quick stated that it is not a tax for those who are utilizing the services.

Kernen remarked, "It's probably unconstitutional," before joking that it unlikely would occur in Quick's lifetime.

The projected revenue from the unrealized gains tax and substantial capital gains tax increase is estimated to be nearly $800 billion, according to a Peter G. Peterson Foundation analysis.

Planet Chronicle' Kristen Altus contributed to this report.