My state (Massachusetts) imposes a 5.2% tax on unrealized capital gains.  I'm trying to understand how this tax is calculated. Here's an example:
John Doe makes $50,000 in a given year. Meanwhile, one of his investments — let's say an index fund — accrues $10,000 in interest. In Massachusetts, John Doe's taxable income will be $60,000 for that year.
Is that correct?