{"id":2336437,"date":"2024-09-04T08:52:57","date_gmt":"2024-09-04T12:52:57","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/harris-walz-wealth-tax-would-harm-everybody-except-super-rich\/"},"modified":"2024-09-04T09:03:25","modified_gmt":"2024-09-04T13:03:25","slug":"harris-walz-wealth-tax-would-harm-everybody-except-super-rich","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/harris-walz-wealth-tax-would-harm-everybody-except-super-rich\/","title":{"rendered":"Harris-Walz Wealth Tax Would Harm Everybody Except Super Rich"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fharris-walz-wealth-tax-would-harm-everybody-except-super-rich%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2336437&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Democratic presidential candidate Kamala \u2064Harris has \u200dendorsed a proposal for $5 trillion in tax increases over the next decade as part of\u2063 the Biden-Harris administration\u2019s budget. Central to this proposal is \u200ca significant increase in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tax-hike-in-new-proposal-only-for-couples-making-more-than-509000-white-house\/\" title=\"Tax Hike in New Proposal Only for Couples Making More Than 9,000: White House\">top tax rate<\/a>\u2063 on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-wants-80-billion-to-fund-irs-audits-tax-enforcement-against-high-income-earners\/\" title=\"Biden Wants  Billion To Fund IRS Audits, Tax Enforcement Against High-Income Earners\">long-term capital gains<\/a>, which would rise from the current 20%\u200d to 44.6% for high-income \u2064earners. This change poses a threat to taxpayers by\u2062 drastically raising \u2062taxes on unrealized gains, particularly affecting \u200bthose\u2064 with incomes and assets over $100 million. The lack of indexing for inflation means that taxpayers could face higher liabilities on assets\u2063 that \u200chave not actually appreciated in real terms, leading to decreased asset \u2062values and wealth \u2064destruction.<\/p>\n<p>The \u2063<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fmr-white-house-economic-adviser-kudlow-slams-sen-warrens-wealth-tax\/\" title=\"Fmr. White House economic adviser Kudlow slams Sen. Warren\u2019s wealth tax\">proposed wealth tax<\/a> could negatively impact individuals across all income levels, causing devaluation\u200d of \u200bvarious \u2063capital assets like stocks, real estate,\u2064 and personal property. Critics warn \u2064that this could \u2063trigger a downward spiral\u200d in asset prices, potentially\u2062 leading to severe economic consequences reminiscent of a depression. \u2064The burden \u200cwould largely fall on \u2064the middle class\u200b and retirees,\u2062 while the wealthiest \u200cindividuals might find ways\u200d to protect their assets, exacerbating economic\u200b disparities. the proposed tax plan could disrupt investment dynamics, pushing resources toward less productive\u200b opportunities and risking\u200b widespread financial instability.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Democrat presidential candidate Kamala Harris has&nbsp;<a href=\"https:\/\/www.atr.org\/5-trillion-list-of-tax-hikes-kamala-harris-just-endorsed\/\" target=\"_blank\" rel=\"noreferrer noopener\">confirmed her support<\/a>&nbsp;for $5 trillion in tax increases over 10 years in the&nbsp;<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2024\/03\/budget_fy2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Biden-Harris administration&rsquo;s proposed budget<\/a>. What should be truly terrifying to any taxpayer is the fact that the total increase is not the worst thing about Harris&rsquo; plan.<\/p>\n<p>Among the many and varied tax hikes Harris and running mate Tim Walz endorse is a big increase in the top tax rate on capital gains. &ldquo;[T]he proposals would increase the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-could-double-its-taxes-to-start-massive-new-social-program\/\" title=\"California Could Double Its Taxes To Start Massive New Social Program\">top marginal rate<\/a> on long-term capital gains and qualified dividends to 44.6 percent,&rdquo; an explanation of the Biden-Harris budget <a href=\"https:\/\/home.treasury.gov\/system\/files\/131\/General-Explanations-FY2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">states<\/a>. The top tax rate on capital gains held for more than a year is currently <a href=\"https:\/\/www.nerdwallet.com\/article\/taxes\/capital-gains-tax-rates\" target=\"_blank\" rel=\"noreferrer noopener\">20 percent<\/a>, for those with taxable income above $518,000. The tax is paid only if the individual sells the assets.<\/p>\n<p>Capital gains taxes are not indexed for inflation, so the tax bite will rise dramatically whenever the Federal Reserve increases the money supply to cover the rapidly rising U.S. government debt, which is inevitable under all believable current scenarios. People will be paying real taxes on imaginary increases in capital gains. That extra tax cost will lower the value of the affected assets. If you own stocks, land, or other valuables, the Harris-Walz tax hike will reduce their value.<\/p>\n<p>Even more egregiously, &ldquo;The Harris-endorsed budget calls for an annual 25 percent minimum tax on the unrealized gains of individuals with income and assets exceeding $100 million,&rdquo; Americans for Tax Reform&nbsp;<a href=\"https:\/\/www.atr.org\/5-trillion-list-of-tax-hikes-kamala-harris-just-endorsed\/\" target=\"_blank\" rel=\"noreferrer noopener\">notes<\/a>. &ldquo;Once in place, it won&rsquo;t be long before the threshold is lowered to hit more and more Americans.&rdquo;<\/p>\n<p>This tax would have enormous consequences for people in all income brackets, not just the super rich. It will do its destruction by causing a massive net reduction in personal wealth in the United States.<\/p>\n<p>Here&rsquo;s how that will happen if the Democrats&rsquo; plan comes to fruition. The Harris-Walz wealth tax will reduce the value of all capital-gaining assets by imposing an unavoidable, government-enforced new cost on them &mdash; the annual cost of the tax. <\/p>\n<p>Limiting the tax to the very wealthy is immaterial, because reducing the investor demand for a particular supply of assets will necessarily reduce the prices of those assets &mdash; which is their value. When those less-valuable assets are sold to other people, they will bring artificially reduced prices. That is wealth destruction.<\/p>\n<p>The proposed wealth tax would thus decrease the values of stocks; housing and other real estate; bonds; personal property, such as automobiles, boats, some jewelry, and art works; and so on.<\/p>\n<p>&ldquo;That is how you trigger what you call a downward spiral in asset prices,&rdquo;&nbsp;<a href=\"https:\/\/www.youtube.com\/watch?v=I-4uDzB3cLk\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a>&nbsp;entrepreneur and investor Vivek Ramaswamy. &ldquo;It&rsquo;s the best formula for triggering the Second Great Depression, if we ever had one.<\/p>\n<p>As if widespread market crashes were not bad enough, the knock-on effects could be tragic. By crashing the asset markets, the Harris-Walz wealth tax will destroy the retirement nest eggs of the Baby Boomers and Generation X. With the Social Security system already facing insolvency, this asset crash will have a terrible effect on the elderly. Starvation, homelessness, and countless other ills could proliferate.<\/p>\n<p>Meanwhile, the superrich at whom the taxes were aimed will maximize their wealth by trading capital-gains-producing items for other assets with lower gains and hence less economic value. The prices of those assets will rise, of course, creating further economic distortions.<\/p>\n<p>The general movement in the economy will be from high-value uses of resources to lower-valued ones. People will move their money from the most profitable enterprises to those that cost them the least after taxes.<\/p>\n<p>The enterprises these investors will abandon for tax purposes, however, were more profitable because the public received more value from them than others. Investment thus moves away from highly desired, high-value-added, economically efficient activities to ones that generate less wealth &mdash; or none at all, or losses. Resources and human effort are wasted, and wealth is destroyed.<\/p>\n<p>Thus, the Harris-Walz wealth tax will create enormous, ever-compounding economic distortions that move resources away from their best and most efficient uses.<\/p>\n<p>On top of all that, the tax will decrease federal revenue, not increase it. Many of the richest Americans may move out of the United States and renounce their citizenship, depriving us of our most economically successful people &mdash; who got that way by increasing the production of goods and services more than others did.<\/p>\n<p>The federal government will attempt to force them to pay up, but it will not succeed. The wealthiest people always find a way to avoid paying the most economically damaging taxes. The federal treasury will lose the tax revenue those emigrants are currently paying. The less-wealthy will have to pay higher taxes to make up for those losses, even if Congress tries to kick the can down the road by borrowing the money, because interest payments on the debt will rise. That will further suppress economic growth &mdash; and tax revenues.<\/p>\n<p>All the damage the tax would cause would neither raise federal tax revenues nor punish the wealthy.<\/p>\n<p>This unprecedented and probably unconstitutional tax scheme would bring on many other harmful effects. The full destructive power of the Harris-Walz wealth tax is unknowable, though its overall outcome is clear: a massive economic contraction and an awful and unnecessary reduction of the standard of living all across the country.<\/p>\n<hr>\n<div>\n<p><a href=\"https:\/\/stkarnick.substack.com\/\">S.T. Karnick<\/a> is a senior fellow at The Heartland Institute and author of the <a href=\"https:\/\/heartland.org\/subscribe\/\">Life, Liberty, Property<\/a> weekly e-newsletter.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Democratic presidential candidate Kamala Harris has publicly backed a proposal for $5 trillion in tax increases over the next decade as part of the Biden-Harris administration&#8217;s budget. What should alarm taxpayers even more than the total increase is the specifics of Harris&#8217; plan. Among various tax hikes supported by Harris and her running mate Tim Walz is a significant rise in the top tax rate on capital gains. According to an explanation of the Biden-Harris budget, \u201cthe proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.\u201d Currently, individuals with taxable income exceeding $518,000 pay a 20 percent tax on capital gains held for over a year, but this tax only applies when assets are sold.<\/p>\n<p>Capital gains taxes are not adjusted for inflation, meaning that as the Federal Reserve increases money supply to manage rising U.S. government debt\u2014an outcome likely under current conditions\u2014the real tax burden will grow based on illusory increases in capital gains. This additional taxation will diminish asset values; if you own stocks, land, or other valuable items, you could see their worth decrease due to these proposed hikes.<\/p>\n<p>Moreover, \u201cThe Harris-endorsed budget proposes an annual minimum tax of 25 percent on unrealized gains for individuals with income and assets exceeding $100 million,\u201d as noted by Americans for Tax Reform. \u201cOnce implemented, it won\u2019t be long before this threshold is lowered to affect more Americans.\u201d This policy would have significant repercussions across all income levels\u2014not just among the wealthy\u2014leading to substantial reductions in personal wealth throughout America.<\/p>\n<p>If Democrats&#8217; plans are realized, this wealth tax would lower values of all capital-gaining assets by imposing an unavoidable new cost\u2014the annual taxation itself\u2014on them. Even if initially aimed at high earners only, decreased investor demand will inevitably lead to lower asset prices overall.<\/p>\n<p>This proposed wealth tax threatens various asset classes including stocks; real estate; bonds; personal property like cars and jewelry; among others. Entrepreneur and investor Vivek Ramaswamy warned that such measures could trigger &#8220;a downward spiral in asset prices,&#8221; potentially leading us into another Great Depression.<\/p>\n<p>The fallout from crashing asset markets could be dire: retirement savings for Baby Boomers and Generation X may be devastated at a time when Social Security already faces insolvency risks\u2014resulting in increased poverty rates among seniors.<\/p>\n<p>Meanwhile, those targeted by these taxes might find ways to protect their wealth by exchanging high-capital-gains items for less economically valuable ones with lower associated taxes\u2014a move that distorts market dynamics further.<\/p>\n<p>Overall economic activity would shift from high-value investments toward less profitable ventures due to these new costs imposed by taxation policies designed ostensibly against wealthy individuals but which ultimately harm everyone else too.<\/p>\n<p>In addition to creating severe economic distortions that misallocate resources away from their most productive uses while failing to generate expected federal revenue increases\u2014the richest may choose expatriation or renounce citizenship altogether\u2014to avoid punitive taxes altogether leading middle-income earners facing higher burdens instead since they cannot escape so easily through relocation strategies available only at higher income brackets<\/p>\n<p>Ultimately this unprecedented\u2014and likely unconstitutional\u2014tax scheme threatens widespread economic contraction along with unnecessary declines in living standards nationwide<\/p>\n","protected":false},"author":3410,"featured_media":2336438,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/08\/Copy-of-Untitled-84.png","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[35077,37556,40047,38341,40046],"class_list":["post-2336437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-economic-impact","tag-harris-walz","tag-super-rich","tag-tax-policy","tag-wealth-tax"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/08\/Copy-of-Untitled-84.png","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2336437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3410"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2336437"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2336437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2336438"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2336437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2336437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2336437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}