A recent analysis by the Tax Foundation indicates that Vice President Kamala Harris’ tax proposal could lead to widespread job losses, hinder economic progress, and increase the complexity of the U.S. tax system, according to a report from the Daily Caller.
The study, which was released on Tuesday, highlights that Harris’ plan could result in nearly 800,000 full-time jobs being lost and create obstacles to economic growth. The proposal includes higher corporate taxes and taxes on unrealized capital gains, which the Tax Foundation says will have significant long-term effects on employment, wages, and overall economic output.
According to the report, Harris’ plan could cause the elimination of approximately 786,000 full-time jobs and reduce the U.S. gross domestic product (GDP) by 2%. Additionally, wages might decrease by around 1.2%.
In comparison, the economic proposals from former President Donald Trump, including a 60% tariff on China, would lead to about 387,000 jobs being lost but would result in a slight wage increase of 0.6%, according to the same study.
The authors of the study — William McBride, Erica York, Garret Watson, and Alex Muresianu — wrote, “We find the [Harris] tax policies would raise top tax rates on corporate and individual income to among the highest in the developed world, slowing economic growth and reducing competitiveness.”
They also raised concerns that Harris’ proposed tax credits and exemptions could add further complexity to the tax system, potentially leading to inefficiencies and increased costs, particularly in industries like housing.
A key point of contention in Harris’ plan is her proposal to raise the corporate tax rate from 21% to 28%. The Tax Foundation suggests that this increase could deter investments and limit the expansion of businesses. The report notes that such a tax hike could render numerous business ventures unprofitable, further weakening economic performance.
Another controversial element of Harris’ proposal is a tax on unrealized capital gains, which would impose taxes on the increased value of assets before they are sold. Critics of this idea argue that it could reduce stock market investments, which are crucial for fostering innovation and driving economic growth.
A separate analysis by the Cato Institute suggests that taxing unrealized gains might cause investors to move their assets abroad. This is similar to what happened in France when a wealth tax caused capital and wealthy individuals to leave the country.
On the other hand, Trump’s economic strategy involves extending the 2017 Tax Cuts and Jobs Act, which reduced the corporate tax rate from 35% to 21%. He has also proposed lowering the rate to 15% for certain businesses. However, the study points out that Trump’s plan to impose a 60% tariff on China, along with a 10% universal tariff, would likely negate much of the positive economic impact from these tax cuts.
Both Harris’ and Trump’s tax proposals carry significant consequences for the federal deficit. The Tax Foundation estimates that Harris’ plan could add up to $2.6 trillion to the deficit, while Trump’s proposals could increase it by $1.3 trillion. With the federal debt currently hovering around $35.35 trillion, concerns about the viability of either candidate’s fiscal plans are growing.
The report concluded by stating, Harris’ “fiscal policy stance at this point leaves a large void regarding how she might deal with the already unprecedented, dangerous, and unsustainable federal debt trajectory.”
{Matzav.com}
Writing about all this is a waste of time. All the women voters know, is, that she will protect abortion rights, and therefore whatever else she does is amazing.
She doesn’t even know what abortion rights she wants to protect. She has never even read the Roe v Wade decision. What they call abortion rights were never a part of that decision, and actually violate those regulations. She and they are total jokers.