In a recent Twitter exchange, Elon Musk stirred up the conversation by commenting on Kamala Harris’s proposed economic policies, specifically targeting her ideas around price controls and new taxes. Responding to a tweet that supposedly outlined Harris’s proposed policies, including a 28% corporate tax, a 44.6% capital gains tax, and a 25% tax on unrealized gains, Musk quipped, “This path leads to bread lines & ugly shoes.”
Don't Miss:
The average American couple has saved this much money for retirement — How do you compare?
A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
Trending: Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?
VP Harris has been clear about her goals to reduce income inequality and hold big corporations accountable. Her plan includes greatly raising taxes on the richest Americans and the largest companies. She said, “Look, I know most businesses are creating jobs, contributing to our economy and playing by the rules. But some are not, and that's just not right. And we need to take action when that's the case.”
She also pointed out that many big food companies are seeing their highest profits in two decades. While many grocery chains pass along these savings, others still don't.
Trending: Don’t miss out on the next Nvidia – you can invest in the future of AI for only $10.
People who support Harris’s plan say that regular Americans need these changes as the gap between the rich and everyone else widens. They believe that by making the wealthiest Americans and big corporations pay more taxes, the government can fund important services, lower the national debt, and help middle- and lower-income families.
So, what exactly is Musk reacting to? For example, she supports increasing the corporate tax rate to 28%. This is a step up from the current 21% rate set during the Trump administration. The goal is to ensure that big corporations contribute more to the federal budget.
Trending: Will Cannabis and Psilocybin drug development lead the way in disrupting the $678 billion pharmaceutical industry? This start up is betting on it and you can be an early investor too, with just $250 for under $2/share
She also backs a proposal to tax capital gains – profits from investments – at 44.6% for those earning over $1 million annually – a significant increase that would make the U.S. capital gains tax one of the highest in the world.
Lastly, Harris supports a 25% tax on unrealized gains. This means that even if someone hasn’t sold an investment, they could still be taxed on the increase in its value. This policy mainly targets the ultrawealthy, particularly those with over $100 million in assets.
Price controls, where the government sets limits on how much companies can charge for products and services, have historically resulted in shortages and lower-quality goods and services. Opponents don’t have to point further than Cuba, Venezuela, North Korea, or the Soviet Union, where similar policies led to empty store shelves, long lines for bread, and ugly shoes, like Musk said.
Read Next:
This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article 'This Path Leads To Bread Lines & Ugly Shoes,' Says Elon Musk About Kamala Harris' Price Controls And Potential Tax Policies originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.