Vice President Kamala Harris announced her endorsement for President Biden’s plan for a $5 trillion tax increase, leading to intense criticism from economists and political analysts.
Andy Puzder, former CEO of CKE Restaurants, referred to the plan as “voodoo economics” and warned of dire consequences. “The idea that we’re going to tax unrealized capital gains is absurd. This is voodoo economics… it’s totally ridiculous,” Puzder said on “The Evening Edit”.
Newt Gingrich, former House Speaker and Fox News contributor, shared Puzder’s concerns about the plan’s potential to reduce private sector growth and increase government interference.
The tax proposal includes:
- – 25% tax on unrealized capital gains for individuals with over $100 million in wealth,
- – Increased corporate taxes from 21% to 28%.
Experts predict nearly $800 billion in new government revenue, but fear negative impacts on economic growth, small businesses, and taxes exceeding 50%.
Art Laffer, former Reagan economic adviser, criticized Harris’ economic agenda, stating, “These are irrational policies that will send us into an economic ditch.”
The proposal marks a significant reversal from 2017 tax cuts, raising concerns about its impact on American businesses.
Analysts and experts have also warned against rushing into new taxes or spending policies, on grounds that they might hurt Americans as well as the broader economy. Puzder reiterated, “The first Trump tax cuts made jobs and improved revenue. The new ones will do just the opposite.”
