Kamala Harris’s $5 Trillion Tax Plan

[Vambo]

 

 · 5d

What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

In a campaign otherwise light on policy specifics, Vice President Kamala Harris …

 

[Axe]

"Americans owe capital-gains taxes when an asset is sold, but not if they pass those assets on to someone else at the time of their death. That means someone who inherits assets from a deceased parent, for example, does not have to pay taxes on how much those assets appreciated since they were purchased. Instead, the person who inherits the assets has to pay taxes on the gains only from the time they were inherited — and only once they are sold."

As it should be..

[cccjwh]

Cheetos trying to break his record to debt increase. Cheetos sure loves to give the rich tax breaks.

 

Trump budget proposals would spike deficits 5 times more than Harris (cnbc.com)

Former President Donald Trump’s economic proposals would increase federal deficits by $5.8 trillion over the next decade, almost five times more than those of Vice President Kamala Harris, which would add $1.2 trillion, according to a new pair of studies from the nonpartisan Penn Wharton Budget Model.

The Trump report found that his plan to permanently extend the 2017 tax cuts would add over $4 trillion to deficits over the next 10 years. His proposal to eliminate taxes on Social Security benefits comes with a $1.2 trillion price tag, while his pledge to further reduce corporate taxes would add nearly $6 billion.

 

[MLD Woody]

It'll trickle down!

[Jax]

https://amac.us/newsline/economy/5-trillion-list-of-tax-hikes-kamala-harris-just-endorsed/

Vice President Kamala Harris wants to extract a $5 trillion tax increase from American households and businesses, her campaign confirmed on Monday.

The Harris campaign officially endorsed the laundry list of new and higher taxes included in the Biden-Harris administration’s fiscal year 2025 budget, a plan that would increase taxes by $5 trillion over ten years.

The burden of Harris’s tax increases will hit households in the form of diminished wage growth and higher costs of goods and services. These Harris tax increases will make the U.S. less competitive vs. our adversaries. 

Harris also endorsed further increasing the size and power of the already-supersized IRS and erode taxpayer rights by watering down procedures designed to protect taxpayers from abusive and dishonest IRS agents (details below.)

 

https://finance.yahoo.com/news/kamala-harris-supports-tax-unrealized-193900073.html

The idea of a wealth tax has gained increasing traction in recent years.

The perceived problem that these policymakers are trying to solve is that, increasingly, very wealthy households operate without ever selling their assets. They are frequently paid in stock and options, often untaxed. They access cash and property through loans secured by those assets, which are again untaxed, and asset swaps.

This practice, known as "buy, borrow, die," means that the very wealthy may be able to circumvent some taxes, operating without ever triggering a taxable event. It also means that ever-more wealth keeps being effectively locked up indefinitely, idling in portfolios to be used as collateral.

Some economists have proposed solving this with the estate tax. There are two main criticisms of that approach however: First, while not a dead letter, the estate tax collects less and less revenue every year. Second, the estate tax offers much less flexibility than a revenue-based tax, as it only allows taxation after the semi-unpredictable event of an individual's death.

This has lead to a growing embrace of taxing unrealized capital gains. Proponents argue that a wealth tax will is the only way to tax ultrawealthy households, which would otherwise continue their current practice of indefinitely holding untaxed assets. This would generate revenue and, by forcing a liquidity event, return many of those assets to the market.

There is significant criticism around the idea of a wealth tax, however. One of the most significant question remains a legal one. Critics argue that the federal government does not have the authority to tax individual assets outside of a transaction. This argument is primarily based on the Fifth Amendment Taking's clause, which reads in relevant part "nor shall private property be taken for public use, without just compensation" and on the Direct Taxation Clause of the Constitution which reads, in relevant part, "No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken."

Most Constitutional scholars believe that these arguments are weak, and political more than legal.

Anti-tax advocates have attempted to the Takings Clause to argue against the constitutionality of many taxes, including the income tax, for years without success. The Direct Taxation Clause is more ambiguous. The Supreme Court has never defined what actually constitutes a "direct" vs. an "indirect" tax. There is no clear authority to argue that a wealth tax would trigger this clause, and any such holding would likely come in conflict with many other areas of the tax code. The closest modern authority on this issue comes from a 2024 case Moore vs. USA in which the Court upheld a tax on undistributed foreign assets.

Beyond the legal criticisms, there are significant questions about the implementation and enforcement of a wealth tax. As noted in the example in the previous section, unrealized gains can quickly become unrealized losses, meaning taxes could be imposed even though a household does not actually receive the full benefit or ownership of the money they are taxed on.

And as the Tax Policy Center notes, any wealth tax would have to address complicated assets including businesses and real estate holdings, and tax-avoidance strategies such as trusts and corporations. These are not necessarily fatal problems for a wealth tax, as any tax scheme must address complex assets and avoidance, but they must be addressed in order for this idea to become a mature proposal.

[Jax]

Actually they bring up property tax, and they're almost right. Property taxes shouldn't go up, it should be the same as when you bought your house.

[Browns149]

3 hours ago, Jax said:

Actually they bring up property tax, and they're almost right. Property taxes shouldn't go up, it should be the same as when you bought your house.

Here in WV. We have to pay PERSONAL property tax. If you own your vehicle for 10 years, you pay tax on it for 10 years. 
Anything with a title. Car, boat, trailer, motorcycle. All of it. EVERY YEAR

[Jax]

39 minutes ago, Browns149 said:

Here in WV. We have to pay PERSONAL property tax. If you own your vehicle for 10 years, you pay tax on it for 10 years. 
Anything with a title. Car, boat, trailer, motorcycle. All of it. EVERY YEAR

That's crazy

[calfoxwc]

1 hour ago, Browns149 said:

Here in WV. We have to pay PERSONAL property tax. If you own your vehicle for 10 years, you pay tax on it for 10 years. 
Anything with a title. Car, boat, trailer, motorcycle. All of it. EVERY YEAR

WOW, that is really bad.

[Browns149]

8 hours ago, calfoxwc said:

WOW, that is really bad.

On the upside though, there is no city, county, or RITA tax here. My paycheck gets taxed by Federal, Social Security, Medicare, and WV. That’s it. 

[DieHardBrownsFan1]

12 hours ago, Browns149 said:

Here in WV. We have to pay PERSONAL property tax. If you own your vehicle for 10 years, you pay tax on it for 10 years. 
Anything with a title. Car, boat, trailer, motorcycle. All of it. EVERY YEAR

When I lived in VA same thing.

[Vambo]

OPINION

TOTAL ANNIHILATION

 

Here's what Kamala Harris' tax Armageddon will cost you and the US economy

 

Here's what Kamala Harris' tax Armageddon will cost you and the US economy

Kamala Harris' tax plans are a giant leap toward socialism

 

BeyondWords

Gov. Tim Walz says a Harris administration would have no place in Americans' bedrooms. But judging by what we know from the Harris tax plan, it would have a bigger place than ever in our wallets and bank accounts.

Harris is proposing a $5 trillion tax increase, the biggest in American history. If passed, it would fundamentally reshape the American economy and the scale in which the government extracts funds from citizens. Her plans include:

Raising the corporate tax rate from 21% to 28%: This 33% tax hike would make American businesses less competitive globally. Combined with state levies, it would make American corporations among the highest taxed in the developed world. The country would return to the bad old days of corporate inversions, where businesses flee offshore to reduce their tax costs.

 

Vice President Kamala Harris speaks on her economic policy at the Hendrick Center For Automotive Excellence on Aug. 16, 2024 in Raleigh, North Carolina. (Grant Baldwin/Getty Images)

 

Economists and common sense say workers and customers pay for such corporate tax hikes because companies are forced to lower wages and increase prices to fund them. More than one million American small businesses file as corporations, so this tax hike wouldn't only hit massive corporations like Google and Apple as the Harris campaign implies.

KAMALA HARRIS AND HER TWO SOCIALIST PROPOSALS TO CRUSH THE US ECONOMY

Raising the capital gains tax rate to match the personal rate: This move would nearly double the capital gains tax rate, creating a huge disincentive to invest in America. Access to credit would further decline, and equity prices that ordinary Americans depend on for their retirement would plummet.

Harris overlooks the good reasons investment income is taxed at a lower rate. For one, it is not indexed to inflation, so investors already face a significant inflation tax on their appreciation. For another, investment income is already taxed at the corporate level, so it deserves to be taxed less when distributed to minimize double taxation.

Video

Ending the step-up in basis for estates: Harris wants to end the tax-free transferring of most estates and treat death as a taxable event for capital gains purposes. This is a massive attack on baby boomers planning their wills and dramatically reduces what they will be able to pass down to their heirs.

 This plan would prevent many small businesses and family farms from passing down their properties. Consider a business or farm that has appreciated from $100,000 to $1 million over the last generation. Many heirs could not afford the associated tax hit of several hundred thousand dollars and would have no choice but to sell to generate the liquidity needed to pay.

TRUMP SAYS HARRIS HAS GONE 'FULL COMMUNIST' AFTER UNVEILING HANDOUT-FILLED ECONOMIC POLICY: 'NEVER WORKED'

 

Harris' plan attacks a primary aspiration of many small business owners: the opportunity to create generational wealth.

Video

Taxing unrealized capital gains (aka a wealth tax): Harris wants to fundamentally change how taxes are calculated by taxing paper gains in property and investments before they are realized. Such a move would tax expected profits that may not actually materialize if the market falls. Think of the massive penalty to investors in companies like Pelaton (stock price down 98%) or WeWork (delisted after bankruptcy) that would be taxed on phantom gains that never materialize.

Small business owners who work for decades to increase the value of their business would be hit with major tax bills year after year as punishment for this appreciation. Ordinary Americans would see their retirement accounts decline as investors pull out of public markets. 

CLICK HERE FOR MORE FOX NEWS OPINION

Allowing the Tax Cuts and Jobs Act to expire: Harris opposes the Tax Cuts and Jobs Act of 2017 and plans to let it expire as scheduled at the end of next year. This would create a massive tax increase for Main Street, which would have to say goodbye to a 20% small business tax deduction, immediate expensing of capital, and lower tax rates.

VideThe TCJA led to historic shared economic prosperity in 2018 and 2019, and it has allowed many small businesses to weather the Biden-Harris storm. The tax hike that would accompany its elimination would be the final straw for many small businesses.

These are just some of the tax hikes a Harris administration would seek. Harris also wants to increase the top marginal personal rate to 44.6% and quintuple the stock buyback tax.

[Canton Dawg]

3 hours ago, Vambo said:

OPINION

TOTAL ANNIHILATION

 

Here's what Kamala Harris' tax Armageddon will cost you and the US economy

 

Here's what Kamala Harris' tax Armageddon will cost you and the US economy

Kamala Harris' tax plans are a giant leap toward socialism

 

BeyondWords

Gov. Tim Walz says a Harris administration would have no place in Americans' bedrooms. But judging by what we know from the Harris tax plan, it would have a bigger place than ever in our wallets and bank accounts.

Harris is proposing a $5 trillion tax increase, the biggest in American history. If passed, it would fundamentally reshape the American economy and the scale in which the government extracts funds from citizens. Her plans include:

Raising the corporate tax rate from 21% to 28%: This 33% tax hike would make American businesses less competitive globally. Combined with state levies, it would make American corporations among the highest taxed in the developed world. The country would return to the bad old days of corporate inversions, where businesses flee offshore to reduce their tax costs.

 

Vice President Kamala Harris speaks on her economic policy at the Hendrick Center For Automotive Excellence on Aug. 16, 2024 in Raleigh, North Carolina. (Grant Baldwin/Getty Images)

 

Economists and common sense say workers and customers pay for such corporate tax hikes because companies are forced to lower wages and increase prices to fund them. More than one million American small businesses file as corporations, so this tax hike wouldn't only hit massive corporations like Google and Apple as the Harris campaign implies.

KAMALA HARRIS AND HER TWO SOCIALIST PROPOSALS TO CRUSH THE US ECONOMY

Raising the capital gains tax rate to match the personal rate: This move would nearly double the capital gains tax rate, creating a huge disincentive to invest in America. Access to credit would further decline, and equity prices that ordinary Americans depend on for their retirement would plummet.

Harris overlooks the good reasons investment income is taxed at a lower rate. For one, it is not indexed to inflation, so investors already face a significant inflation tax on their appreciation. For another, investment income is already taxed at the corporate level, so it deserves to be taxed less when distributed to minimize double taxation.

Video

Ending the step-up in basis for estates: Harris wants to end the tax-free transferring of most estates and treat death as a taxable event for capital gains purposes. This is a massive attack on baby boomers planning their wills and dramatically reduces what they will be able to pass down to their heirs.

 This plan would prevent many small businesses and family farms from passing down their properties. Consider a business or farm that has appreciated from $100,000 to $1 million over the last generation. Many heirs could not afford the associated tax hit of several hundred thousand dollars and would have no choice but to sell to generate the liquidity needed to pay.

TRUMP SAYS HARRIS HAS GONE 'FULL COMMUNIST' AFTER UNVEILING HANDOUT-FILLED ECONOMIC POLICY: 'NEVER WORKED'

 

Harris' plan attacks a primary aspiration of many small business owners: the opportunity to create generational wealth.

Video

Taxing unrealized capital gains (aka a wealth tax): Harris wants to fundamentally change how taxes are calculated by taxing paper gains in property and investments before they are realized. Such a move would tax expected profits that may not actually materialize if the market falls. Think of the massive penalty to investors in companies like Pelaton (stock price down 98%) or WeWork (delisted after bankruptcy) that would be taxed on phantom gains that never materialize.

Small business owners who work for decades to increase the value of their business would be hit with major tax bills year after year as punishment for this appreciation. Ordinary Americans would see their retirement accounts decline as investors pull out of public markets. 

CLICK HERE FOR MORE FOX NEWS OPINION

Allowing the Tax Cuts and Jobs Act to expire: Harris opposes the Tax Cuts and Jobs Act of 2017 and plans to let it expire as scheduled at the end of next year. This would create a massive tax increase for Main Street, which would have to say goodbye to a 20% small business tax deduction, immediate expensing of capital, and lower tax rates.

VideThe TCJA led to historic shared economic prosperity in 2018 and 2019, and it has allowed many small businesses to weather the Biden-Harris storm. The tax hike that would accompany its elimination would be the final straw for many small businesses.

These are just some of the tax hikes a Harris administration would seek. Harris also wants to increase the top marginal personal rate to 44.6% and quintuple the stock buyback tax.

Nobody said that pandering comes cheap.

[Browns149]

11 hours ago, DieHardBrownsFan1 said:

When I lived in VA same thing.

Someone told me that dogs are personal property.