Vice President Harris’s campaign is said to be focused on helping the middle-classes. She says she has plans to reduce costs and increase wages for middle-class working people. But her tax increase proposals aimed at the rich and big corporations would actually end up harming middle-class working people and the entire U.S. economy.
Harris has proposed increasing the top marginal tax rate, raising the top tax rate on capital gains and dividends, and increasing the corporate tax rate to 35%. All of these tax rate increases would reduce savings and investment, slow economic growth, and reduce jobs and incomes throughout the economy.
Every working person would bear the burden of her proposal to increase the corporate tax rate to the highest rate in the world. Study after study shows that a higher corporate rate reduces wages, increases the prices people pay, and drains their retirement savings.
Real wages are down 4% under the Biden-Harris administration. Raising the corporate rate would reduce wages even more. Studies show that as much as 70% of the burden of a corporate rate increase falls on workers’ wages.
Americans have seen the prices they pay on day-to-day items increase by 20% since January 2021. Prices would increase even more with a corporate tax rate increase. Studies have shown that a corporate tax increase would have a “significant effect” on prices, with nearly one-third of the tax increase falling on consumers in the form of higher prices.
Families have seen their savings reduced in the past few years. The personal savings rate has dropped to 3.4%, much lower than the long run average of 8.5%. Hardship withdrawals from retirement savings accounts have hit record highs as families struggle to make ends meet. A corporate rate hike would reduce their retirement savings even more, as shareholder values are reduced by the higher tax rates on savings and investments.
The Vice President claims to care about the middle-class. But her higher tax rates on the rich and big corporations would hit the middle-class hard. Increasing economic growth is the best way to increase prosperity for all Americans. Raising tax rates on savings and investments would reduce economic growth, harming all those she wants to help.
Kamala Harris's Tax Increases Would Hit the Middle Hardest
August 17, 2024
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