Kamala Harris tax plan would cost nearly 800K jobs: analysis

Vice President Kamala Harris’ tax proposal would cost the US nearly 800,000 jobs, roughly half as many as former President Donald Trump’s plan, according to a recent analysis.The nonpartisan Tax Foundation think tank estimated that Harris’ proposals would shrink the American long-run GDP by 2% and reduce wages by 1.2%, while lowering employment by roughly 786,000 jobs.The Harris economic agenda includes a corporate tax rate hike coupled with up to $50,000 in handouts for small-business startups, $25,000 for first-time homeowners and $6,000 in expanded child tax credits.The Tax Foundation estimates that would increase taxes by $4.1 trillion over the next decade — but raise only $642 billion in net revenue.“We find the tax policies would raise top tax rates on corporate and individual income to among the highest in the developed world, slowing economic growth and reducing competitiveness,” the group wrote in its analysis.“The tax credits and other carveouts would complicate the tax code, run more spending through the IRS, and, together with various price controls, fail to improve affordability challenges in housing and other sectors.”At least 177,000 jobs would be lost under a Harris administration just by raising the net investment income tax rate from 3.8% to 5% and shifting the Medicare tax rate up to the same percentage.Another 131,000 jobs would vanish under the expansion of the Earned Income Tax Credit (EITC), a provision in the 2021 American Rescue Plan — for which Harris cast the tie-breaking vote — as well as her campaign pledge to give $6,000 in tax credits to families of newborns.Harris’ plan to hike the corporate tax rate to 28% would cost 125,000 jobs, and the additional tax rise on individuals with incomes over $400,000 would cause 86,000 more jobs to be lost.Taxing unrealized capital gains of $5 million for individuals and $10 million for joint filers after death would cost 75,000 jobs.The only economic proposal that would increase...