Comment Re:taxing unrealized gains is problematic (Score 1) 290
The big problem is that it's a one-time windfall that might trigger recurring spending proposals.
This is why Mike Dukakis lost the 1988 presidential election to George Bush. The 1986 federal tax law change led to a one-time surge in state capital gain tax revenue. Dukakis (Massachusetts governor at the time) pushed a bunch of ongoing spending increases through the state legislature; next year when the one-time revenue surge disappeared, Massachusetts was left with a very large budget deficit that sunk Dukakis' reputation as a capable governor.
The sane thing to do would have been to either pay off debt or fund backlogged infrastructure repair and maintenance.