Kamala Harris Taxation Approach

On a gross basis, we estimate that Vice President Harris’s proposals would increase taxes by about $4.1 trillion from 2025 to 2034. After taking various credits and tax cuts into account, Harris would raise about $1.7 trillion over 10 years on a conventional basis, and after factoring in reduced revenue from slower economic growth, the net revenue increase comes to $642 billion. We estimate the proposed tax changes would reduce long-run GDP by 2.0 percent, the capital stock by 3.0 percent, wages by 1.2 percent, and employment by about 786,000 full-time equivalent jobs.

We find the 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 tax credits and other carveouts would complicate the tax code, run more spending through the IRS, and, together with various price controls, fail to improve affordability challenges in housing and other sectors.


The goal is to moved the federal corporate tax rate from 21% to 28%. This also means if you include state corporate tax rates that could be effective tax rate of 35-44% for enterprises in the United States.


Excellent work by Kevin O'Leary


Plan:

This plan would see such gains assessed annually, even if the asset in question isn’t sold by the investor or owner. The proposal, first laid out by U.S. President Joe Biden in March, indicated that such taxes would be treated as prepayments against future realized capital gains to avoid taxing the same amount of gain twice. The taxes could be paid in annual installments over a specified number of years. Under a complicated formula, some refunds would be provided in cases where there are subsequent losses or gifting of assets. This would only be the case if the prepayment amount exceeded the long-term capital gains rate times the taxpayer’s unrealized gains. However, refund amounts would first have to be put toward any remaining installment payments on previous unrealized gains before being refundable in cash.


This advertisement has not loaded yet, but your article continues below.

The plan has been sharply criticized for targeting the wealthy and disincentivizing venture capital investment — much like the Trudeau government’s June increase in the capital gains inclusion rate drew heavy criticism from Canada’s startup community. Marc Andreessen, the billionaire venture capitalist who runs Andreessen Horowitz and co-founded Netscape in the early days of the Internet, said in a July 16 episode of his podcast that the tax change would make startups “completely implausible” because no one would want to create a growth company only to have their equity stripped away by yearly capital gains taxes. This view aligns with the opposition political argument that the U.S. economy would not be helped by the measure.

The focus is the most wealthiest that is those over $100M. The problem is that there is not that many over $100M people and organizations in the United States. https://www.nbcnews.com/business/taxes/harris-plans-tax-unrealized-stock-gains-only-people-100-million-rcna168819


Let me further expand on the fiscal cycle based on the latest report of CBO (Congress Budget Office)



The United States on the pat to $2.1T deficit for FY 2023/2024. https://www.cfr.org/blog/election-2024-united-states-has-debt-problem

Biggest challenges for the United States is slowing the growth of expenses related to medicate, social security, defense, and other department expenses.

The tax code also needs a complete overhaul as part of embracing tax fairness. https://mainemorningstar.com/2024/09/17/tax-cuts-and-jobs-act-expiration-is-a-chance-for-tax-fairness-to-flourish/


  1. Capital is very fluid as such hiking taxes and making other changes could result in a flee of capital to other jurisdictions. The United States is ranked #12 - https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/rankings/wcr-rankings/#_tab_Rank . Singapore is higher. Singapore corporate tax rate is 17% as compare to the United States federal corporate tax rate of 28%. https://www.statista.com/chart/30231/the-worlds-most-competitive-economies/ .
  2. United States stock market has seen major returns over the past few years under Harris and Biden. Wealth creators have raised concerns about the proposed unrealized capital gain tax change. - https://www.investors.com/etfs-and-funds/personal-finance/unrealized-capital-gains-take-down-the-stock-market/ Mark Cuban or It's also important to note that the Harris campaign has not yet put forth a formal proposal for the Billionaire's Tax. It's thought to apply a 25% annual minimum tax on unrealized capital gains on centimillionaires with assets of $100 million or more. The Democratic nominee has merely said she backs tax-related proposals put forth by the Biden administration.
  3. United States has been trying to re-shore manufacturing through the inflation reduction act and other policies. https://www.businessinsider.com/reshoring-stock-picks-to-buy-made-usa-manufacturing-boom-bofa-2024-9 . I have written articles that show Harris and Biden have less manufacturing jobs when you look at the base % of manufacturing jobs under Trump and compared that to the Biden era - Blog – GDP – USA Election – Democrats vs Republics – Harris vs Trump – Goldman Sachs - https://www.dhirubhai.net/posts/paul-young-055632b_trump-win-could-dent-future-us-gdp-growth-activity-7236957770539810816-rq-4?utm_source=share&utm_medium=member_desktop
  4. Wealth tax never worked and this pure vote buying approach by Harris to show that she is going after the wealthiest - https://www.hoover.org/research/wealth-tax-poor-idea . Justin Trudeau is trying a same approach and that has not worked - Blog – The Trudeau era and the loss to GDP per capita – March 2024 - https://www.dhirubhai.net/pulse/blog-justin-trudeau-era-loss-gdp-per-capita-wealth-march-paul-young-sloac/
  5. Middle class America has struggled over the past decades - https://www.heritage.org/markets-and-finance/commentary/harris-helps-torch-your-finances-then-pretends-shes-firefighter
  6. New green deal will have an impact of USA GDP - https://thehill.com/opinion/finance/4834897-harris-promises-a-worse-economy-than-bidens/
  7. Harris plan - https://www.bnnbloomberg.ca/business/2024/08/22/what-to-know-about-kamala-harris-economic-plan/
  8. Child poverty - https://www.axios.com/2024/09/10/child-poverty-rate-america-2023
  9. Illegal immigrants - https://budget.house.gov/press-release/the-cost-of-the-border-crisis-1507-billion-and-counting
  10. Blog – Cost of Living – Harris vs Trump - https://www.dhirubhai.net/pulse/cost-inflation-biden-harris-era-paul-young-hjtjc/



?

Paul Young CPA CGA (1996)

?

Paul is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industry and geographies for the past 8 years. Paul is a Financial Planning, Analysis, and Reporting SME working with data including integration of macro and micro indicators as part of the integrated business planning and reporting cycle.

[email protected]

?

Seeking employment - https://www.dhirubhai.net/posts/paul-young-055632b_hi-all-linked-in-followers-and-contacts-activity-7199365291288506369-qGVf?utm_source=share&utm_medium=member_desktop

?Courses?—? https://www.dhirubhai.net/posts/paul-young-055632b_activity-7163302861974519809-ryf3?utm_source=share&utm_medium=member_desktop ?

Blog – What is next for ESG Reporting – August 2024 - https://www.dhirubhai.net/posts/paul-young-055632b_introductory-to-esg-and-sustainability-reporting-activity-7233711298838978561-UB6d?utm_source=share&utm_medium=member_desktop

Stock Market – Australia – September 13, 2024 - https://www.dhirubhai.net/pulse/stock-market-asx-september-13-2024-paul-young-uytrc/

Stock Market Week-Ending September 14, 2024 - https://www.dhirubhai.net/pulse/stock-market-week-ending-september-14-2024-paul-young-i90ic/

?

Blog – Stock Market – Australia – September 20, 2024 - https://www.dhirubhai.net/pulse/stock-market-australia-september-20-2024-paul-young-citxc/

?

Stock Market for W/E September 7, 2024 - https://youtu.be/lw4GXHlaZAk?si=r4pzGhoHvxHLScnc or https://www.dhirubhai.net/posts/paul-young-055632b_stock-market-for-we-september-7-2024-activity-7238691424135716865-CmT6?utm_source=share&utm_medium=member_desktop

Revenue decline 3 of 5 S and P 500 - https://www.dhirubhai.net/posts/paul-young-055632b_3-out-of-5-companies-miss-revenue-estimates-activity-7238238374031941634-7Frv?utm_source=share&utm_medium=member_desktop

?

The S&P 500 (#SP500) plunged 4.25% for the holiday-shortened week, posting its worst weekly performance since early March 2023.

?

https://seekingalpha.com/news/4147719-3-out-of-5-companies-miss-revenue-estimates-this-week-earnings-scorecard

?

?

?








要查看或添加评论,请登录

社区洞察

其他会员也浏览了