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Gov. Tim Walz has said a Harris Administration has no place in Americans' bedrooms, but judging by what we can tell from her tax plan, a Harris Administration will have a bigger impact on Americans' wallets and bank accounts than ever before.
Harris has proposed $5 trillion in tax hikes, the largest in American history. If passed, it would fundamentally change the American economy and how much money the government collects from its citizens. Her plan includes:
Increase the corporate tax rate from 21% to 28%: This 33% tax increase will make American companies less competitive internationally. Combined with state taxes, American companies will become some of the most highly taxed companies in the developed world. It will take the US back to the bad old days of corporate inversion, when companies fled overseas to reduce their tax burden.
Vice President Kamala Harris speaks on economic policy at the Hendrick Center for Automotive Excellence in Raleigh, North Carolina, on August 16, 2024. (Grant Baldwin/Getty Images)
Economists and common sense tell us that workers and customers will pay the price of higher corporate taxes, as companies will be forced to cut wages and raise prices to fund the increased taxes. Over one million small businesses in America file as corporations, so the tax hike won't just hit big companies like Google and Apple, as the Harris campaign suggests.
Kamala Harris and the two socialist proposals that will destroy the US economy
Raise capital gains tax rates to the same as personal tax ratesThis measure would nearly double capital gains tax rates, creating a significant disincentive to investing in the United States, further reducing access to credit and causing the stock prices that ordinary Americans rely on for their retirement to plummet.
Harris misses the good reasons why investment income should be taxed at a lower rate: First, it is not indexed to inflation, so investors are already paying a large inflation tax on its appreciation, and second, because investment income is already taxed at the corporate level, it should be taxed less when distributed to minimize double taxation.
End of Estate Valuation Increase: Harris said, Tax-free transfer of most property And it would treat their deaths as subject to capital gains tax, a massive attack on will-making baby boomers that would drastically reduce the assets they can pass on to their heirs.
This plan would prevent many small businesses and family farms from passing on their assets to future generations. Consider a business or farm that has appreciated in value by $100,000 to $1 million in the past generation. Many of the heirs would be unable to afford hundreds of thousands of dollars in taxes and would have no choice but to sell in order to get the liquidity they need to make the payments.
Trump calls Harris “completely communist” after unveiling handout-filled economic plan that “never worked”
Harris' plan attacks a key aspiration of many small business owners: the opportunity to build generational wealth.
Tax on unrealized capital gains (aka wealth tax): Harris is fundamentally Change how taxes are calculated Tax real estate and investment book gains before they are realized. Such measures tax anticipated gains that may never be realized if markets fall. Consider the huge penalties that investors in companies like Peraton (whose stock price fell 98%) and WeWork (delisted after bankruptcy) would face on fictitious gains that never materialize.
Small business owners who have worked for decades to increase the value of their businesses will be punished with huge annual taxes for this rise in stock prices, and ordinary Americans will see their retirement account balances shrink as investors withdraw from the stock market.
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Allow the Tax Cuts and Jobs Act to lapse: Harris opposes the Tax Cuts and Jobs Act of 2017 and plans to let it expire as scheduled at the end of next year, which would force huge tax increases on Main Street and take away the 20% tax credit, instant capital write-offs and tax rate cuts for small businesses.
The TCJA brought historic economic prosperity in 2018 and 2019 and enabled many small businesses to weather the Biden-Harris storm. The tax increases that come with the repeal of the TCJA will be the final straw for many small businesses.
Those are just some of the tax hikes the Harris Administration would seek. Harris also wants to raise the top personal marginal tax rate to 44.6% and increase the stock buyback tax by five times.
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Harris' tax reform plan would be a giant leap toward socialism, especially since it would be expanded to many more taxpayers if enacted.
It is up to politically independents who may differ with Republicans on some issues to vote conservative in this election and prevent this tax catastrophe from happening.
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