Vice President Kamala Harris’ recent economic proposals have sparked concern among financial experts, who warn of potential negative impacts on American wallets and retirement savings.
At the heart of the debate is Harris’ plan to raise corporate tax rates from 21% to 28%, a move that could have far-reaching consequences for the average citizen.
Don Luskin, Chief Investment Officer at TrendMacro, offered a stark assessment of Harris’ proposal on Fox Business’ “The Evening Edit.” He argued that the proposed tax hike would not only fail to achieve its intended goals but could actively harm Americans’ financial well-being.
“Raising the corporate tax from 21% where it is today to 28%, where Kamala Harris wants to put it, is a 33% expense increase,” Luskin explained.
This increase in corporate expenses, he contends, could lead to a significant drop in stock market performance and, consequently, the value of Americans’ retirement accounts.
Luskin’s analysis paints a troubling picture: “That will take 13% off of S&P 500 earnings, that will take 13% off the S&P 500, that will take 13% off your 401(k).”
Economist Warns Harris’ Corporate Tax Hike Could Slash Americans’ 401(k)’s By Double Digits: 'will take 13% if off your 401(k)' https://t.co/zjR9jUWLUw pic.twitter.com/j8IlBNLUQF
— JPNWMN (@JPNWMN) August 21, 2024
For many Americans who rely on their 401(k)s for retirement security, such a decrease could represent a substantial loss of hard-earned savings.
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The proposed corporate tax hike isn’t the only aspect of Harris’ economic plan raising eyebrows. Her recent speech in North Carolina unveiled a series of proposals aimed at addressing housing affordability, tax credits, and grocery prices.
“Green Eggs and Sham”: The first three policy proposals from Kamala Harris —price controls, 25K give-aways to first time home buyers she likes and a stiff hike in corporate tax rate— are of, by and for the far left. She’s a pure San Francisco Democrat. https://t.co/G6GlzHWd2n
— Hugh Hewitt (@hughhewitt) August 20, 2024
However, her suggestion of a federal ban on “corporate price gouging” has faced significant criticism from those who fear it could lead to market distortions and supply chain issues.
Interestingly, despite these controversial proposals, the Financial Times reports that some business leaders are considering supporting Harris. This shift comes as a surprise to many, given the traditional alignment of the business community with Republican policies.
Ken Spain, a Republican consultant, noted, “In a matter of weeks, the business community has gone from readying itself for a Republican-run Washington to scenario planning for a wide range of outcomes.”
This potential support from business leaders doesn’t negate the concerns raised by economists like Luskin. The proposed policies could still lead to increased inflation, supply chain disruptions, and a reduction in Americans’ retirement savings.
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As we approach the November elections, the stakes for the American economy couldn’t be higher. Harris’ proposals represent a significant shift in economic policy that could reshape the financial landscape for years to come, potentially turning America into a socialist country.
