Morning Wire The Hidden Costs of Harris' Economic Proposals | Saturday Extra
Sep 7, 2024
Thomas Savage, an economist at the American Institute for Economic Research, shares insights on Kamala Harris' economic proposals and their potential ramifications. He discusses how increased taxes and price controls could burden American taxpayers, particularly low-income individuals facing inflation. The conversation critiques planned tax deductions for small businesses and the unrealized capital gains tax, while entertaining listeners with a satirical look at the political landscape. Savage also touches on the fluctuating nature of ESG initiatives in today's economic climate.
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Harris's Economic Proposals and Their Potential Impact
- Kamala Harris's economic proposals, including price controls and tax breaks, have been analyzed by the Penn Wharton budget model.
- The model predicts negative consequences like lower GDP, reduced economic activity, and wage reductions.
Tax Deductions vs. Tax Increases for Small Businesses
- Harris proposes $50,000 tax deductions for small businesses, but this may be a gimmick.
- Her support for corporate tax increases and potential expiration of the Tax Cuts and Jobs Act could offset any benefits.
Effective Components of the Trump Tax Cuts
- The Trump tax cuts included reductions in personal and business income taxes, along with changes in reporting and exemptions for R&D.
- These cuts benefited both businesses and individuals, especially through changes in personal income tax rates.