A recent study from the Tax Foundation reveals the potentially severe consequences of Kamala Harris’ proposed multi-trillion-dollar tax hike, calling it the largest in U.S. history.
The analysis paints a grim picture of the economic fallout from Harris’ plan, highlighting its negative effects on incomes, job creation, and overall economic growth.
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According to the study, Harris’ tax plan would decrease average incomes by 1.8%, reduce GDP by 2%, and cut the nation’s capital stock by 3%. These numbers could be understated, according to the report. The plan would result in the loss of 786,000 jobs, including:
- 177,000 jobs lost due to increased taxes on net investment income and Medicare,
- 125,000 jobs from raising the corporate income tax to 28%, a rate higher than China’s,
- 86,000 jobs lost due to higher individual income taxes, and
- 75,000 jobs cut by imposing a new 25% tax on unrealized capital gains.
The report also criticizes the plan for doing little to address the country’s affordability crisis. Harris’ homebuyer assistance initiative, which could cost hundreds of billions of dollars, would raise housing prices, reduce investment in rental housing, and harm families economically.
The study further warns that her price control measures, described as “Soviet-style,” would reduce production incentives and hurt consumers.
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Harris’ tax proposals would elevate U.S. tax rates to some of the highest among OECD countries. Personal, corporate, and capital gains tax rates, along with taxes on dividends and corporate income, would all see significant increases.
The study also warns that her tax hike could add trillions to the national deficit over the next decade. While Harris’ public rhetoric is vague on the specifics, the report suggests the real-world impacts could be even more damaging than currently predicted.
With the 2024 election approaching, this analysis raises concerns that Harris’ policies could further strain the U.S. economy.
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