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.)
Kamala Harris’s tax increases include:
Small business tax rate hike to 39.6%
Small business owners pay business taxes on their individual tax return. The Harris endorsed budget raises the top marginal income tax rate to 39.6% from the current 37%.
Corporate tax rate higher than the EU and communist China.
Kamala Harris wants to hike the current 21% federal corporate income tax rate to 28%, higher than communist China’s 25% and the EU average of 21%, her campaign said Monday.
The Kamala Harris federal 28% rate is higher than the Asia average corporate tax rate of 19.8%, the EU average of 21%, the world average of 23.5%, and the OECD average of 23.7%. (See the Tax Foundation’s comprehensive listing here.)
The Harris federal 28% rate is also higher than Canada (26.2%), the UK (25%) Sweden (20.6%), and even Russia (20%), Afghanistan (20%), and Iraq (15%).
After adding state corporate income taxes, the combined federal-state tax burden in most states will easily exceed 30% under the Harris plan.
The Harris rate hurts the USA vs. China with its 25% rate. And note: Industry sectors of strategic use to the Chinese government pay an even lower rate of 15%.
American workers will bear the brunt of Harris’s corporate tax increase.
The non-partisan Joint Committee on Taxation affirmed in congressional testimony that corporate tax rate hikes hit “labor, laborers.” A study compiled by the Tax Foundation found that “labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome.”
Capital gains and dividends tax more than twice as high as communist China
Here is a direct quote from the Biden-Harris budget: “Together, the proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.“
Yes, you read that correctly: A Kamala Harris capital gains and dividends tax rate of 44.6%
China’s capital gains tax rate is 20%. Is it wise to have higher taxes than China?
Under the Harris plan, the combined federal-state capital gains tax exceeds 50% in many states. California will face a combined federal-state rate of 59%, New Jersey 55.3%, Oregon at 54.5%, Minnesota at 54.4%, and New York state at 53.4%.
Unconstitutional wealth tax on unrealized gains
The Harris-endorsed budget calls for an annual 25 percent minimum tax on the unrealized gains of individuals with income and assets that exceeding $100 million. Once in place, it won’t be long before the threshold is lowered to hit more and more Americans.
Americans overwhelmingly oppose taxes on unrealized gains, by a factor of three to one, including 76% of independents. Americans know that a “gain” isn’t “real” until it is actually realized, in hand.
This Harris tax is similar to the wealth taxes pushed by radical progressives such as Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.).
Capital gains taxes should only be paid when a gain is realized. Harris’s wealth tax would break with current tax policy and impose tax Americans based on the value of an asset on a particular arbitrary date.
This unprecedented tax would give even more power to the IRS, encourage taxpayers to move assets overseas, and will only expand to hit millions of Americans over time.
A second Death Tax by taking away stepped-up basis when parents die
Harris wants to impose a second Death Tax by taking away stepped-up basis when parents die. This would result in a mandatory capital gains tax at death — separate from, and in addition to — the current Death Tax.
This will impose a steep tax increase and paperwork nightmare for small businesses, farms, and families.
The Biden-Harris administration has been pursuing this for a while. In a piece titled “This Biden Tax Hike Hike Will Hit Mom & Pop Hard” tax lawyer Robert W. Wood writes:
Under current tax law, assets that pass directly to your heirs get a step-up in basis for income tax purposes. It doesn’t matter if you pay estate tax when you die or not. For generations, assets held at death get a stepped-up basis—to market value—when you die. Small businesses count on this.
Wood notes the “proposal would tax an asset’s unrealized appreciation at transfer. You mean Junior gets taxed whether or not he sells the business? Essentially, yes. The idea that you could build up your small business and escape death tax and income tax to pass it to your kids is on the chopping block.”
As reported previously by CNBC:
“When someone dies and the asset transfers to an heir, that transfer itself will be a taxable event, and the estate is required to pay taxes on the gains as if they sold the asset,” said Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center.
Harris’s proposal to take away stepped-up basis has already been tried, and it failed: In 1976 congress eliminated stepped-up basis but it was so complicated and unworkable it was repealed before it took effect.
As noted in a July 3, 1979 New York Times article, it was “impossibly unworkable.”
NYT wrote:
“Almost immediately, however, the new law touched off a flood of complaints as unfair and impossibly unworkable. So many, in fact, that last year Congress retroactively delayed the law’s effective date until 1980 while it struggled again with the issue.“
As noted by the NYT, intense voter blowback ensued:
“Not only were there protests from people who expected the tax to fall on them — family businesses and farms, in particular — bankers and estate lawyers also complained that the rule was a nightmare of paperwork.“
Global tax cartel with 21% minimum tax rate
Harris wants to yoke the U.S. to an international tax cartel and impose a 21% global minimum tax on American businesses. This would be a devastating blow to U.S. competitiveness and sovereignty and eliminate healthy tax competition between countries.
The Biden-Harris administration has for years pursued a misguided international tax regime under the control of the Paris-based Organisation for Economic Co-Operation and Development (OECD). The OECD wants to stamp out tax competition.
Harris’s plan would go well beyond the OECD’s framework for a 15% global minimum tax and instead increase the rate to 21%. And the tax rate will only go up from there since bloated governments won’t have to compete.
Donald Trump had wisely kept the U.S. away from the tax cartel.
Quadrupled tax on stock buybacks — a Harris tax that will hit every American with a 401K or IRA or union pension
Democrats imposed a 1% stock buyback tax in the misnamed Inflation Reduction Act. Now, the Harris endorsed budget calls for quadrupling the tax, the burden of which hits every American with a 401k, IRA, or union pension.
A record share of 401(k) account holders took early withdrawals from their accounts last year for financial emergencies including preventing foreclosures, evictions and paying medical and tuition bills, according to the Wall Street Journal.
Raising taxes and restricting buybacks would further harm the 58 percent of Americans who own stock and more than 60 million workers invested in a 401(k). An additional 16.14 million Americans are invested in 529 education savings accounts.
Quadrupling the buyback tax, would stifle U.S. employers and put Americans at a competitive disadvantage vs. China, which does not have a buyback tax.
30% federal excise tax on electricity used in cryptocurrency mining
The Harris-backed budget imposes a 30% excise tax on the cost of electricity used to mine digital assets. The Treasury Department’s claims that mining has “negative environmental effects and can have environmental justice implications as well as increase energy prices.” Another excuse to raise taxes. It also neglects the fact that private sector innovation is already reducing any preexisting de minimis emissions by switching to “proof of stake” instead of “proof of work” consensus mechanisms.
Applies the wash sale rules to digital assets
The Harris-backed budget would apply the wash sale rule to digital assets. Under current IRS rules, a wash sale occurs when an investor sells “stock or securities” at a loss, and either 30 days before or after the sale, purchases a “substantially identical” stock or security. The IRS prohibits the deduction of losses when a wash sale occurs. The Joint Committee on Taxation (JCT) estimates that this change would increase the tax burden on digital asset transactions by roughly $17 billion.
$37 billion tax on American energy
The Harris-endorsed budget calls for a host of new taxes on oil and gas companies totaling $37 billion. This includes the repealing of expensing for intangible drilling costs (IDC), the use of percent depletion for oil and gas well and additional excise taxes on crude oil production. These tax hikes will be passed on to consumers in the former higher gas prices and energy bills. This tax hike on American energy comes on the heels of Democrats passing roughly $20 billion worth of new energy taxes included in the Inflation Reduction Act.
32% increase to Medicare taxes
Harris endorsed raising Medicare taxes from the current rate of 3.8 percent to 5 percent for individuals making over $400,000 per year, roughly a 32 percent tax hike. The plan reportedly broadens the Net Investment Income Tax (NIIT) to apply to non-passive business income and Harris would also increase the hospital insurance (HI) payroll tax from 0.9 percent to 2.1 percent for individuals earning over $400,000.
Carried interest tax on capital gains
Harris would tax carried interest as ordinary income for individuals earning over $400,000. While the Left labels carried interest as a “loophole” it is actually based on longstanding tax principles. Raising taxes on carried interest capital gains should be rejected. It is a terrible tax policy that would harm economic growth, reduce jobs, and reduce the returns of public pension funds across the country.
Even Sen. Kyrsten Sinema (I-Ariz.) rejected Democrats’ attempt to raise taxes on income from carried interest by blocking this proposal from being included in the Inflation and Reduction Act.
This tax hike would hit private equity, venture capital, real estate partnerships, and their portfolio companies which together account for over 25 million American jobs. In response, firms would downsize and decrease investment, causing both a loss of jobs and a reduction in the returns investors see.
$24 billion retirement tax
The Harris proposal calls for capping the retirement plan benefits of certain individuals. The White House projects this limitation on retirement benefits will raise $24 billion in taxes from individuals with retirement account balances above $10 million and earnings above $400,000.
Real estate tax hike on Like-Kind exchanges
Harris backs raising taxes on capital gains from real estate transaction by limiting what are knows as 1031 Like-Kind Exchanges to $500,000 in gains.
Under current tax rules, real estate investors can exchange real property used for business for similar real property and defer capital gains tax. Harris’s proposed changes to this tax treatment will hurt individuals and farmers.
An even further-supersized IRS
If you thought Harris and congressional Democrats had already supersized the IRS enough, think again. The Harris budget plan shovels another $104.3 billion to the agency.
Erodes taxpayer rights by making it easier for IRS agents to stack up questionable penalties against taxpayers
Last year the Biden-Harris IRS got caught illegally backdating penalty documents and signatures in U.S. Tax Court in order to run up the bills on taxpayers. The court caught the IRS lying. U.S. Tax Court is generally very deferential to IRS neglect but in this case the court was rightly furious.
While testifying to congress in late 2023, IRS Commissioner Werfel declined to say whether anyone has been fired for this practice. It is suspected the backdating incident was not an isolated occurrence within the IRS. Another indication that the IRS has a severe accountability problem that is only going to get worse.
Due to reforms enacted by Republicans in 1998, IRS agents are currently required to get written approval from their immediate supervisor before imposing penalties on taxpayers. This is designed to protect taxpayers from agent chicanery.
Congressional investigators discovered years of abuse by IRS agents running up the penalty score as an intimidation tactic against taxpayers. Agents would use the threat of penalties as a bargaining chip. The IRS has a history of targeting people who do not have the means to fight back, and unethical agents at employee review time could point to all the penalties they imposed on people who perhaps did not deserve it. So, in 1998 congressional Republicans enacted a taxpayer protection (Section 6751) which requires agents to get personal written approval from their immediate supervisor before sending written penalty letters to taxpayers.
But the Biden-Harris budget allows IRS agents to shop around for sympathetic supervisors anywhere in the building. Harris also wants to scrap the written approval requirement altogether for many penalty scenarios. Agents will abuse this and taxpayers will be the victim.
From the Biden-Harris budget: “In addition, the proposal would expand approval authority from an ‘immediate supervisor’ to any supervisory official, including those that are at higher levels in the management chain or others responsible for review of a potential penalty.”
Won’t be long before agents just go directly to the taxpayer-hostile supervisor on, say, the fourth floor who will sign off on anything. Good luck to taxpayers without the resources to defend themselves in court against an agency with a near-unlimited budget.
Reprinted with permission from Americans for Tax Reform by Mike Palicz.
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
Anyone who thinks these proposals will only affect the “rich” is fooling themselves. There aren’t enough millionaires and billionaires to pay for all this and the corporations can and will pack up and leave.
The sad reality is that nearly half the country will think these string of tax hikes, on top of the already existing, regressive tax policies we have in this country, are a great idea. That same half of the country is of course economically illiterate and doesn’t think beyond the immediate here and now, as they will buy into the same old lies that none of this will personally impact them. That is until the Democrats revise the rules soon after passage to cover nearly everyone. So, while it is true that every one of the tax hikes proposed by the Democrats (this is all part of the Democrat Party’s platform, NOT just something that Kamala personally dreamed up) will inflict great harm on the country, there are lots of useful idiots out there that will cheer and applaud the Democrats on this nonsense.
Democrats used to try and hide their love of the communist Marxist ideology. That is of course all gone now that they are so very close to finally achieving their ultimate dream of a transformed United States into yet another failed and bankrupt socialist Utopia. Where everyone, but the small number of ruling elites, will live in universal poverty and unending misery. True equality of outcomes and social justice achieved through the wholesale impoverishment of the masses via government confiscation of all private wealth and assets in the name of equity, inclusion and social justice. Just ask the people of the other socialist h*ll holes how things have turned out for them after they voted their own socialists / Marxists into power in their own countries.
You can vote socialism or Marxism in, but you sure can’t vote it out once it has a solid foothold. As the Democrats clearly have achieved in these last 3 1/2 years. We truly do live in interesting times.
This is scary!!! Pray that Kamala does not get elected and Republicans can take control of both houses. Then they must get things done.
IllegalAlienCrimes.com Over 50,000 Americans have been victims of the illegal aliens SO FAR. That number will continue to grow. Americans have been murdered, raped, and robbed and all the democrats can do is laugh and cackle. The democrats plan to make all of these illegal aliens citizens of the United States. The illegals are being paid with our money and they will be given mail-in ballots to vote for democrats. Americans must put a stop to this.
Truly scary ideas coming out of the democrats. The list is of course extensive, but what was failed to be mentioned was thisn Is effectively a 100% increase. The current tax burden/collection is just under $5Trillion dollars a year. The sad part of our current situation is the Federal government is spending $7 Trillion a year and that is why so much money has been printed and why inflation is so high. A $5Trillion increase is a 100% increase. Please PAY ATTENTION, LEARN AND VOTE.
As I’ve said before the “Democrat” party, just like all communists who steal from all, is nothing but an organized crime syndicate intending to steal from Americans. they do it by theft by tax, however since Harris/Biden we also know that they are in cahoots with the UN, the Mexican Cartels, and the Chinese Fentanyl industry, they are now an international crime syndicate involved in money laundering through Ukraine, human, sex, and drug trafficking at our Southern border, as well as prostitution and slavery by enabling the Mexican cartels, and in pay for play with foreign meddling in our government, i.e. Menendez, and Biden. It is appalling they had the gumption to bring a RICO Act charge against some of President Trump’s associates as they themselves should be charged under that law. The Democrats are the largest threat to our constitutional republic, the existence of the United States of America, and to world stability and peace with their support of the UN/WEF one world government global threat.
The tax and tax some more ultra left democrat party has just showed it’s true colors. If they win in November we citizens are going to be living in the second Soviet Union. We won’t be able to compete against China or Russia or Europe. Inflation would soar. Which kameltoe would control with price controls to accelerate the destruction of our republic. She is taxing taxes and stopping any advancement of the middle class and small business owners. But you will have joy. The convention has proclaimed Kameltoe and Tampon Timmy’s ticket the ticket of Joy and no Substance. Do what you want. They will allow Sodom and Gomorrah to flourish. Just obey them they will do the thinking for you. You just go to work and give them your paycheck in taxes. You won’t own nothing but you will be happy. Who said that? Oh yes Klaus Schwab the spokesperson for the elites of the WEF. Those are the real rulers of America if the Democrat ticket is voted in, in November. VOTE TRUMP/VANCE IN 2024. To save America for the people, of the people and by the people.
This was her plan and Biden’s all along if anyone thought different were fooling themselves this is the Dems plan all along get rid of President Trump make him look bad try to make him bankrupt then raise taxes on everyone and all those working will feel it and that means all people will feel it just see what happens if that woman is elected.
Everything she proposes is a another nail in the coffin An average citizen will pay the most. She and her ilk will find the way out of it as always. Collectivism does not work unless one is an ant. How unintelligent is she? The only consolation is that a lot can happen on the way to the throne ,but would the replacement be worse ,if that is possible?
Just a reminder that Romney, Cheney, McConnell, both the Bush’s and all the Rhino Republicans supported this Regime in the 2019 election and continue to support them all because they hate Donald Trump. Talk about cutting off the Country’s nose just for spite because they hate Trump. So, when are all the Republican voters going to start hammering the Rhinos on their Political Contact sites?
Harris tag line should be “you make it, we take it”
These “people” are scum. Absolute scum.
Vote early, folks, because on election day, Democrats are going to “intentionally” create havoc at the polls so people don’t vote. They don’t want you to vote for Trump.
Her billionaire pals– Hog Pritzker, Oprah, Zuckerberg, et.– will hide their assets offshore. We “deplorables” will be stuck paying the bills for the lazy welfare bums AND the illegal swarm!
Well now…I remember from my school days that when the Cown of England started doing all their taxation Americans took appropriate action and over the next several years got rid of the Crown of England governing what Americans do! Seems to me we are being driven real close to emulating what our ancestors felt was prudent! No taxation without representation was the slogan at that time and those actions resulted in our Constitution which has served our country very well, until the leftists and woke crowd have hijacked our country and are trying to implement totalitarian rule with their marxist ideology and importation of illegal aliens that our tax dollars are being spent on to buy the Democrats votes! I read that Trump bought an island, I may send him an email and see if he needs someone to work on his island.
Hey, it’s only money to buy more votes. The Democrats don’t care how hard you and other middle class families worked for it. Socialism has a price, unless your votes are for sale.
Hope there are not enough fools in this country to elect this incompetent woman. Hopefully they won’t be able to cheat their way to victory this time.
I read this article and was sick to my stomach of the financial burden being placed on us, regular people, and I bet that they are using those word salad explanations with the hope that no one realizes that these promises are not going to help no one but a select group of elitists, who are not conservatives.
remember biden told you he would raise taxes when you elected him and he did. how are you enjoying his increase in all prices? well you can bend over again cause she’s gonna stickit to you like biden never thought of. you gonna be stupid this election again. remember it is your kids and grand kids who are going to suffer the most. are you that stupid again? probably.
These proposed corporate tax increases will be passed down to consumers as higher prices for goods and services, which in turn will create more inflation. It will hurt everyone!
Harris is just another economic midget like her boss. Dems have never met a tax hike they didn’t like!!
There can be capital gains when homeowners sell their houses too. Do you really think corporations and businesses will be the only ones taxed? Eventually, you will be taxed to death and won’t be able to afford to own anything and the Communists will be happy.
And I bet Kamala will not bring up this tax issue in her speech tonight!! She will lie and say she will cut taxes while….Trump will cut taxes only for the wealthy!! The Commie Dems just make my blood boil. How anyone with half a brain can vote for these Satans who want to kill the middle class is beyond my realm. Maybe there are more pro-Communist people out there than I think??
Well, at least she’s finally taking a position on something. But knowing the Kamala and her track record, everything she’s extemporaneously spoken on has been a mish-mash of logic spoken with discombobulated verbs and adverbs that when finished, has made little-to-no sense. Just imagine what she’ll say in a debate on these complex tax topics when challenged.
Susan B. Is SPOT ON!!! VOTE EARLY!!! The liberal election thieves will disrupt voting in person with overflowing toilets, “unexpected” power outages, voting machine malfunctions, traffic jams, even pamtifa and Palestinian punk riots. “Election Day” is a thing of the past, as the liberals have succeeded in “reimagining” elections into a long, drawn-out steal.
What makes the government think they are entitled to everybody else’s money? And if the Biden Harris economy is so stellar what does she have to fix on day one? Small businesses provide a huge percentage of the job in this country, but the Democrats are bound and determined to shut small business down. They want everyone dependent on the government. If they don’t like big Pharma, Big Oil, and big anything else how come they like big government. Just a rhetorical question
When companies pay higher taxes, it is passed onto the consumer. It won’t matter if it is a hamburger or a B-1 Bomber, it will be passed onto the taxpayer, that means YOU. Kamala is tax and spend. Get ready to pay half to three quarters of your income to pay for Kamala’s wet dreams. Kiss your country good bye. This is Obama’s dream of world order which he wants to be KING.
Only in America do people get lectured on greed and not “earning more than you need” by a bunch of multibillion & millionaires with a minimum of four (4) luxury homes in locations such as Hawaii to Lake Champlain to Martha’s Vineyard. Let alone threatened with more taxes and poverty THEY CAUSE.
Kamala Harris is only following the tenets of socialism. If she could communicate more effectively, she would win over the hearts of the oppressed working class who are being exploited by the big corporations.
Kamala Harrison is simply striving to bring equality to all the people. While some exist in the misery of the lower class, others revel in their riches. Worse, the disparity ratio of this inequality is growing into an obscene division of the haves, and the have nots.
And the trillions needed to bring justice for the lower classes? Increase the taxes, and print more money to fund the new government subsidy programs. This will add to the national debt but such debt doesn’t really matter. The interest being paid for the Treasury Notes and Government Savings Bonds should be decreased to, say .0000000001%. That will impact on the people that own such government securities, but the money used to purchase those securities was robbed from the people in the first place. The people who have discretionary income deserve to bear the burden of bringing about equality for all.
For all who believe in fairness, vote for Kamala Harris and Tim Waltz on November 5th.
(sarc. sw. off)