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| Home Front: Politix |
| Blinding flash of the obvious, Harris is eyeing your 401k |
| 2024-10-09 |
| [WSJ] Kamala Harris keeps changing her tax plan, but her latest proposal is to raise the corporate tax rate to 28%. She would also raise the top capital-gains tax to roughly 32%, the highest since the 1970s. Extracting money from those big and faceless corporations with profits in the tens of billions of dollars has populist appeal. But the more accurate way to think of the corporate income tax is that it puts Uncle Sam first in line to take a share of all the profits an American corporation earns. Only after the government takes its pound of flesh does anyone else get a return on his money. At a 28% federal corporate tax and an average of roughly a 5% state and local tax, the government would snatch away roughly 33 cents of every dollar of profit. This leaves 67 cents to the shareholders. Those include the more than 100 million Americans who own stock directly or through pension and other retirement funds. Every percentage point that Congress and Ms. Harris raise the tax would dilute the value of the stock owned by the rest of us. Things get even bleaker when one factors in her plan to raise the capital-gains rate. She favors raising the rate to roughly 32% from 23.8%. Add state capital-gains taxes and the rate can easily reach 36%. This is the government taking a second bite out of the corporate apple before the rest of the country has even taken its first. Remember: The value of a share of stock is the present value discounted by the expected after-tax future earnings of the company. |
| Posted by:Besoeker |
| #4 Deep State has always eyed your earnings and property. |
| Posted by: Procopius2k 2024-10-09 16:12 |
| #3 "Saving money is always a good thing, but beware of government program rule changes." ~ A very wise old man, many years gone. |
| Posted by: Besoeker 2024-10-09 07:40 |
| #2 The purpose of the peasants is to support the proper lifestyle of the nobility. |
| Posted by: Grom the Reflective 2024-10-09 02:41 |
| #1 The question never quite fully answered: But VP Harris, how do you intend to pay for your new programs ? |
| Posted by: Besoeker 2024-10-09 02:09 |