• May 27, 2024

Americans Will Find Hillary’s Economic Plan Very “Taxing”

taxes

To date Hillary is calling for 1.105 trillion dollars in new taxes.  The total is actually more because she has not declared how much revenue she plans on taking in with her new capital gains tax or her stock trading tax.  This also doesn’t include taxes proposed in the democratic platform that includes a carbon tax, her soda tax or her 25% tax on guns.  Many of her tax proposals are actually money losers.

Take the capital gains tax.  Many people sell assets that are subject to capital gains taxation in order to invest that money elsewhere.  One important thing you need to know is capital gains is not indexed for inflation.  Say you buy an asset for one dollar and sell it five years later for $1.10.  You pay a tax on the ten cents as if it were profit.  But if inflation increases 15% over that five years you actually lost s nickel, but you owe taxes on a dime.  A rich man can borrow against that asset to avoid the taxes and in many cases the interest on the loan is tax deductible.

Here is the complete rundown on the new taxes promised by Hillary and provided by Americans for Tax Reform:

Income Tax Increase – $350 Billion:

Clinton has proposed a $350 billion income tax hike in the form of a 28 percent cap on itemized deductions.

Business Tax Increase — $275 Billion: Clinton has called for a tax hike of at least $275 billion through undefined business tax reform, as described in a Clinton campaign document.

“Fairness” Tax Increase — $400 Billion: According to her published plan, Clinton has called for a tax increase of “between $400 and $500 billion” by “restoring basic fairness to our tax code.” These proposals include a “fair share surcharge,” the taxing of carried interest capital gains as ordinary income, and a hike in the Death Tax.

But there are even more Clinton tax hike proposals not included in the tally above. Her campaign has failed to release specific details for many of her proposals. The true Clinton net tax hike figure is likely much higher than $1 trillion.

For instance:

Capital Gains Tax Increase — Clinton has proposed an increase in the capital gains tax to counter the “tyranny of today’s earnings report.” Her plan calls for a byzantine capital gains tax regime with six rates. Her campaign has not put a dollar amount on this tax increase.

Tax on Stock Trading — Clinton has proposed a new tax on stock trading. Costs associated with this new tax will be borne by millions of American families that hold 401(k)s, IRAs and other savings accounts. The tax increase would only further burden markets by discouraging trading and investment. Again, no dollar figure for this tax hike has been released by the Clinton campaign.

“Exit Tax” – Rather than reduce the extremely high, uncompetitive corporate tax rate, Clinton has proposed a series of measures aimed at inversions including an “exit tax” on income earned overseas. The term “exit tax” is used by the campaign itself. Her campaign document describing this proposal says it will raise $80 billion in tax revenue, but claims some of the $80 billion will be plowed into tax relief. How much? The campaign doesn’t say.

This proposal completely fails to address the underlying causes behind inversions: The U.S. 39% corporate tax rate (35% federal rate plus an average state rate of 4%) and our “worldwide” system of taxation, which imposes tax on all American earnings worldwide. The average corporate rate in the developed world is 25%. Thirty-one of thirty-four developed countries have cut their corporate tax rate since 2000. The U.S. has not. Hillary’s plan moves in the wrong direction.

There are other taxes Hillary has proposed that are not on the list because the actual plan has not been made available, but the carbon tax will be the killer, because it taxes things we buy every single day multiple times.

“Everyman” Tim Kaine Tried to Raise Taxes on Adult Beverages

Hillary’s Soda Tax Endorsement Violates Middle Class Tax Pledge

Video Shows Hillary’s 25% Gun Tax Endorsement

Democrat Platform Calls for Carbon Tax

Tim Kaine Pushed Income Tax Hikes on Working Families Making As Little as $17,000

If she fails to be elected president, she can always sell her tax plan to a Hollywood director who could make a horror film out of it.  I know it scares me.

 

Related post