In the evolving landscape of American politics, few proposals have raised as much concern as Kamala Harris's latest tax plan. Drawing on the insightful research of PhD Peter St. Onge, it's clear that this plan, if implemented, could wreak havoc on the American financial system, small businesses, and the livelihoods of countless citizens.
Kamala Harris's tax blueprint is staggering in its scope, proposing trillions of dollars in new taxes. It seems that Washington, D.C., in her view, is starved for funds, despite already bloated federal spending. Her plan calls for a draconian increase in taxes on small businesses, hiking the rate to 39.6%. Capital gains and dividends wouldn't escape her tax net either, with top rates soaring to an unprecedented 44.6%. This would be the highest in U.S. history, surpassing even the tax-heavy era of Jimmy Carter. Such a move would effectively confiscate nearly half of Americans' life savings, devastating the financial security of millions.
But Harris doesn't stop there. In a bid to squeeze even more from the American economy, she proposes raising the corporate tax rate by a third, from 21% to 28%. This would undo one of the most successful elements of the Trump administration's economic policy, which made the U.S. one of the most attractive places in the world to do business. Under Harris's plan, the U.S. would plummet in the global rankings, becoming less competitive than countries like China, Canada, and even Russia. Businesses would find it more profitable to move operations to Canada, leaving American workers in the lurch.
For sectors deemed "strategic," the tax burden would be even worse, with rates doubling those in China. And who would bear the brunt of these corporate taxes? According to a Tax Foundation study, it's not the corporations themselves but the workers, who would pay about 70% of these taxes in the form of lower wages. The rest would be passed on to shareholders, resulting in diminished retirement savings, and to consumers, who would face higher prices—ironically, the very inflation Harris has blamed on price gouging.
Adding insult to injury, Harris is also advocating for a second death tax, a policy known as "step-up basis," which would treat death as a taxable event. This means that family businesses and farms, already taxed at the federal and state levels, would face a new tax as if all their assets were sold upon the owner's death. Up to 44.6% of these assets could be seized by the government, potentially crippling family enterprises that have been passed down for generations.
But perhaps the most alarming aspect of Harris's tax agenda is her push for a tax on unrealized gains—an idea so radical that it has never been implemented in the United States. This would mean that every year, the government would pretend that you sold your stocks, your family farm, and other investments, and then tax you on those "gains." Though marketed as a tax on the wealthy, the reality is that it would hit family businesses and farms the hardest. As history has shown, once a tax is introduced, it rarely stays limited to its original targets. The income tax, for example, began as a levy on just the top 1% at a rate of 7%. Today, it ensnares nearly everyone, with rates far higher than the initial 7%.
It's not just Americans who oppose this kind of wealth tax. European countries have tried similar measures, and the results have been disastrous. Wealthy individuals simply moved their money out of the country, hiring savvy tax lawyers to protect their assets, while small businesses and local economies suffered. In Norway, for example, a wealth tax was expected to generate $150 million annually, but instead, $54 billion fled the country, costing Norway $600 million in lost taxes. Harris's plan could set the stage for a similar exodus of wealth from the United States.
Astonishingly, Kamala Harris has already positioned herself further to the left than even President Joe Biden, and this is before the 2024 election. If this is what she's proposing now, one can only imagine the fiscal extremism that might follow if she gains more power. Like the initial rush of a dangerous drug, government spending on stimulus checks, green energy boondoggles, and unnecessary wars may seem sweet at first. But the inevitable consequence will be economic pain, first in the form of inflation and then through taxes that could confiscate your retirement and the financial future of the next generation.
In conclusion, Kamala Harris's tax plan is not just a tax policy; it's an assault on the American Dream. It threatens to undermine the very foundation of our economy, punishing the industrious while rewarding the wealthy elites who can afford to shelter their assets. It's a recipe for financial disaster, and the American people must be vigilant in recognizing the dangers it poses. As Peter Onge's research shows, this is not just a bad policy—it's a path to economic ruin.
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Credit: Much of the analysis presented here is based on the excellent research conducted by PhD Peter St. Onge, whose work has been instrumental in exposing the potential dangers of Kamala Harris's tax plan.
Fore reference: Click Peter St. Onge PhD. (3 minute video)
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