According to Americans for Tax Reform (ATR), Democrat presidential nominee Vice President Kamala Harris’s economic plan would raise taxes by $5 trillion over the next decade.
On Monday, Harris’s campaign unveiled a massive economic package that aims to reverse former President Donald Trump’s tax cuts. The campaign argues that this plan is “a fiscally responsible way to put money back in the pockets of working people and ensure billionaires and big corporations pay their fair share.”
Trump’s Tax Cuts and Jobs Act reduced the corporate tax rate from 35% to 21%, lowered income tax rates, and doubled the standard deduction.
Harris aims to increase the corporate tax rate to 28%, claiming that it would cut the deficit by $1 trillion over the next decade.
Harris also pledged to honor President Joe Biden’s promise not to raise taxes on individuals earning $400,000 or less per year. However, despite this assurance, the Biden-Harris administration has ramped up Internal Revenue Service (IRS) enforcement, which is projected to extract $20 billion from working-class Americans.
Harris’s economic proposal includes raising the capital gains and dividends tax to 44.6%, more than double China’s rate. For comparison, China has a capital gains tax of 20%.
As reported by ART:
China’s capital gains tax rate is 20%. Is it wise to have higher taxes than China?
Under the Harris plan, the combined federal-state capital gains tax exceeds 50% in many states. California will face a combined federal-state rate of 59%, New Jersey at 55.3%, Oregon at 54.5%, Minnesota at 54.4%, and New York state at 53.4%.
The plan proposes a 25% annual minimum tax on unrealized gains for individuals earning over $100 million. Unrealized gains are theoretical profits on investments, as defined by Investopedia. These gains become ‘realized’ only when an investor sells the investment for more than its original purchase price.
Americans for Tax Reform (ATR) highlighted a poll showing that 76% of independents are opposed to taxes on unrealized gains.
Other significant tax increase proposals from Harris include:
- Having small business owners pay taxes on their individual tax returns, up to 39.6 percent from the current 37 percent;
- Imposing a second “death tax” — a mandatory capital gains tax at death — in addition to the current death tax;
- Imposing a 21 percent global minimum corporate tax rate, which goes beyond the Organization for Economic Development’s (OECD) current 15 percent global minimum tax rate;
- Quadrupling the tax on stock buybacks, which would impact Americans’ 401(k)s and other retirement accounts;
- A 30 percent federal excise tax on electricity used in cryptocurrency mining;
- A $37 billion tax on American energy;
- A 32 percent increase in Medicare taxes.
In summary, ATR reported that Harris’s proposed tax increases and other measures would raise taxes by $5 trillion on American households and businesses.
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