Unlocking Capital
A Rules-Based Installment-Payment Framework for Federal Tax Liabilities Attributable to Long-Term Gains on Marketable Securities
From the essay
Congress should establish an elective federal capital-activation regime under which the full tax attributable to qualifying long-term marketable-security gain is determined in the year of disposition, a rules-based payment is made with that year’s return, and the remaining liability is paid over a short statutory period with interest and enforceable collection protections. The proposed Unlocking Capital Act changes the statutory payment schedule only. A statutory index adjusts only the first payment, and Treasury has no discretionary rate authority. Payment flexibility is not forgiveness: full tax remains due, and non-electors retain current law.
Adapted from PDF pages 2, 19, 20.
Version 3.0. The podcast is a short introduction to the full proposal.