{"id":15076,"date":"2024-10-19T21:38:47","date_gmt":"2024-10-19T21:38:47","guid":{"rendered":"https:\/\/lonecandle.com\/?p=15076"},"modified":"2024-10-19T21:38:48","modified_gmt":"2024-10-19T21:38:48","slug":"trump-and-harris-both-favor-tax-hikes-that-would-hurt-ordinary-americans","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=15076","title":{"rendered":"Trump and Harris Both Favor Tax Hikes That Would Hurt Ordinary Americans"},"content":{"rendered":"\n

“The Tax Foundation estimates<\/a> that a 10 percent general tariff “would raise taxes on American consumers by more than $300 billion a year,” “reduce the size of the U.S. economy by 0.7 percent,” and “eliminate 505,000 full-time equivalent jobs.” Retaliation could “further reduce U.S. GDP by 0.4 percent and eliminate another 322,000 full-time equivalent jobs.”<\/p>\n\n\n\n

Trump’s proposed tariffs, including a 60 percent levy on Chinese goods, “would reduce after-tax incomes by about 3.5 percent for those in the bottom half of the income distribution,” the Peterson Institute for International Economics estimates<\/a>. They “would cost a typical household in the middle of the income distribution at least $1,700 in increased taxes each year.”<\/p>\n\n\n\n

Just as Trump ignores those costs, Harris wants voters to believe<\/a> that raising the corporate income tax rate from 21 percent to 28 percent is simply a matter of “ensur[ing] the wealthiest Americans and the largest corporations pay their fair share.” But that is true only if you overlook the broader economic impact<\/a> of that change, which would hurt non-wealthy Americans as employees, consumers, and investors.<\/p>\n\n\n\n

“Studies have shown that the corporate income tax is the <\/em>most harmful tax for economic growth,” the Tax Foundation warns<\/a>. On the flip side, recent research<\/a> indicates that the Trump-backed 2017 reduction in this tax rate, which moved the U.S. from the high end among industrialized countries to the middle of the pack, “significantly boosted domestic investment.”<\/p>\n\n\n\n

By raising the cost of doing business in the United States, a higher corporate tax rate inhibits investment, drives down wage and benefit growth, encourages offshoring of jobs, and reduces the return on retirement savings. “Under a 28 percent corporate rate,” the Tax Foundation estimates, “GDP would fall by $1.84” for “every $1 of higher revenue.””<\/p>\n\n\n\n

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Trump and Harris Both Favor Tax Hikes That Would Hurt Ordinary Americans<\/a><\/blockquote>