Democratic presidential nominee Vice President Kamala Harris’s economic plan aims to increase taxes by $5 trillion over ten years, according to Americans for Tax Reform (ATR).
Harris’s campaign recently unveiled a substantial economic package that would reverse former President Donald Trump’s
Watch the Video
tax cuts, stating that this move is part of a “fiscally responsible way to put money back in the pockets of working people and ensure billionaires and big corporations pay their fair share.”
Under Harris’s plan, the corporate tax rate would be increased to 28%, which she argues would reduce the federal deficit by $1 trillion over a decade.
Harris also pledged to uphold President Joe Biden’s promise not to raise taxes on individuals earning $400,000 or less per year. However, the Biden-Harris administration has increased IRS enforcement, which is projected to collect an additional $20 billion from working-class Americans.
Additionally, Harris’s economic proposal includes raising the capital gains and dividends tax to 44.6%, more than twice China’s capital gains tax rate of 20%.
**Is it Wise to Have Higher Taxes Than China?**
Under Vice President Kamala Harris’s economic plan, the combined federal and state capital gains tax rate in many states would exceed 50%. Specifically, California would face a combined rate of 59%, New Jersey 55.3%, Oregon 54.5%, Minnesota 54.4%, and New York State 53.4%. This is significantly higher than China’s capital gains tax rate of 20%.
The plan also introduces a 25% minimum tax on unrealized gains for individuals earning over $100 million. Unrealized gains represent potential profits on investments that have not yet been sold. According to Investopedia, these gains are only realized when an investment is sold for more than its initial purchase price. A recent poll noted that 76% of independents oppose taxes on unrealized gains.
Other major elements of Harris's tax proposal include:
- Increasing the tax rate on small business owners’ individual tax returns from 37% to 39.6%.
- Implementing a second “death tax” that imposes a capital gains tax at death, in addition to the current estate tax.
- Establishing a 21% global minimum corporate tax rate, surpassing the Organization for Economic Cooperation and Development’s (OECD) current 15% global minimum.
- Quadrupling the tax on stock buybacks, which could affect Americans’ 401(k)s and other retirement accounts.
- Enforcing a 30% federal excise tax on electricity used in cryptocurrency mining.
- Imposing a $37 billion tax on American energy.
- Increasing Medicare taxes by 32%.
According to Americans for Tax Reform (ATR), these proposed tax increases could result in a $5 trillion tax hike on American households and businesses.
**Sean Moran is a policy reporter for usadailynews
News.**