As the Federal Reserve's interest rate decision approaches, investors are adopting a defensive posture, gravitating towards sectors perceived as safe havens.
A new study from the Tax Foundation suggests that Vice President Kamala Harris' tax plan could result in significant job losses, hinder economic growth, and complicate the U.S. tax code, The Daily Caller reported.
The report estimates that Harris' plan would cut approximately 786,000 full-time jobs and reduce the U.S. GDP by 2%. Wages could decline by 1.2%.
In contrast, former President Donald Trump's economic proposals, including a 60% tariff on China, would result in about 387,000 lost jobs but slightly increase wages by 0.6%, according to the same study.
"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," the study's authors — William McBride, Erica York, Garret Watson, and Alex Muresianu — wrote.
They also warned that Harris' tax credits and carve-outs would add complexity to the tax system, ultimately leading to inefficiencies and higher costs in sectors like housing.
One of the most controversial aspects of Harris' plan is a proposed increase in the corporate tax rate from 21% to 28%, which the study suggests could discourage investment and inhibit business growth. The Tax Foundation believes this change would make many business projects unprofitable after taxes, further slowing the economy.
In addition, Harris has proposed a tax on unrealized capital gains, which would tax the increase in the value of assets before they are sold. Critics argue that this could discourage investment in the stock market, a critical driver of innovation and economic growth.
According to a report from the Cato Institute, taxing unrealized gains could prompt investors to shift their assets overseas, following a pattern seen in France after a similar wealth tax drove away capital and high-net-worth individuals.
Study: Harris' Tax Plan Could Cut 786,000 Jobs, Add $2.6T to Deficit
https://www.newsmax.com/.../harris.../2024/09/11/id/1180008/
A new study from the Tax Foundation suggests that Vice President Kamala Harris' tax plan could result in significant job losses, hinder economic growth, and complicate the U.S. tax code, The Daily Caller reported.
The report estimates that Harris' plan would cut approximately 786,000 full-time jobs and reduce the U.S. GDP by 2%. Wages could decline by 1.2%.
In contrast, former President Donald Trump's economic proposals, including a 60% tariff on China, would result in about 387,000 lost jobs but slightly increase wages by 0.6%, according to the same study.
"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," the study's authors — William McBride, Erica York, Garret Watson, and Alex Muresianu — wrote.
They also warned that Harris' tax credits and carve-outs would add complexity to the tax system, ultimately leading to inefficiencies and higher costs in sectors like housing.
One of the most controversial aspects of Harris' plan is a proposed increase in the corporate tax rate from 21% to 28%, which the study suggests could discourage investment and inhibit business growth. The Tax Foundation believes this change would make many business projects unprofitable after taxes, further slowing the economy.
In addition, Harris has proposed a tax on unrealized capital gains, which would tax the increase in the value of assets before they are sold. Critics argue that this could discourage investment in the stock market, a critical driver of innovation and economic growth.
According to a report from the Cato Institute, taxing unrealized gains could prompt investors to shift their assets overseas, following a pattern seen in France after a similar wealth tax drove away capital and high-net-worth individuals.