As election day approaches this fall candidates are pushing tax-plans that could re-shape Americas economic landscape. Donald Trump suggests multiple tax-cuts including no-taxes on tips overtime pay and social security; he even wants tax-free income for first-responders (and maybe everyone else)
The second paragraph shows Trumps spending ideas which dont include any budget-cuts: instead he supports more government funding which means his tax-free promises might need some extra cash somewhere
Kamala Harris presents a different money-game with her multi-trillion dollar re-distribution program. Her most eye-catching idea is a never-before-seen 25% tax on un-realized capital gains (meaning people would pay taxes on value increases even if they dont sell anything)
Here are the main issues with Harrisʼs new tax idea:
- It would hurt workers by making investment harder
- Creates huge admin problems with asset value counting
- Works like a sneaky wealth-tax
- No other country has tried this before
- Starts with rich people but could spread wider
The reasons behind Harrisʼs tax-plan are clear — its already been written up supported by Biden and promises big money for her spending ideas. However both candidates plans point to one thing: government spending will grow no matter who wins on nov 5th