Kamala Harris’ economic plan, which includes a staggering $5 trillion in tax hikes over the next decade, has raised deep concerns among economists, small business owners, and everyday Americans. These proposals represent a drastic shift toward what some are calling “American Peronism,” a dangerous echo of the socialist policies that devastated Argentina. If implemented, Harris’ tax hikes could cripple the U.S. economy, stifle innovation, and impose a heavy burden on American families, particularly those on the brink of retirement who have worked tirelessly to fortify their financial future.
A Staggering $5 Trillion in Tax Increases
Kamala Harris’ proposed tax hikes would undo the relief provided by the tax cuts enacted under former President Donald Trump, which slashed the corporate tax rate from 35% to 21%. Harris plans to raise the corporate tax rate back up to 28%, a move she claims will reduce the deficit by $1 trillion over ten years. However, this is just the beginning.
Harris’ economic plan also includes a range of other tax increases: raising the capital gains tax to 44.6%, more than double China’s 20%; imposing a second “death tax” in addition to the current estate tax; and introducing a 25% minimum tax on unrealized capital gains for those making over $100 million annually. These measures are expected to increase the tax burden by $5 trillion over the next decade, but at what cost?
The Impact on Small Businesses and Investment
One of the most immediate and devastating impacts of these tax hikes would be felt by small businesses. The increase in the corporate tax rate to 28% would place an immense burden on small business owners, many of whom are already struggling with inflation and supply chain disruptions. Jon Taffer, host of “Bar Rescue,” highlighted the consequences of this move, noting that it would siphon off 7% of profits—profits that are crucial for reinvestment, employee raises, and business growth.
In addition to the higher corporate tax rate, Harris’ plan to increase taxes on individual tax returns to 39.6% would strike small business owners who file as individuals. This could lead to reduced hiring, diminished innovation, and a decline in the overall competitiveness of American businesses on the global stage. Large corporations might be able to withstand the pressure or relocate operations overseas, but small businesses do not have that luxury.
The Dangers of Price Controls
Kamala Harris has also proposed instituting federal price controls on food and groceries, a policy that mirrors the disastrous economic experiments of socialist regimes. Price controls might seem like a way to shield consumers from inflation, but history tells us a different story. In every country where such controls have been implemented, from Venezuela to Argentina, the result has been the same: shortages, black markets, and economic collapse.
Jon Taffer described the potential nightmare scenario of price controls in the U.S. in vivid detail. If the government tries to set prices on goods like hamburgers, it will have to regulate every aspect of the supply chain, from the cost of feed for ranchers to the price of fuel for distributors. Such extensive government intervention is not only impractical but also a direct threat to the free market principles that have fueled America’s prosperity. If suppliers cannot cover their costs due to artificially low prices, they will simply stop producing, leading to shortages and even higher prices in the long run.
The Burden on American Families and Retirees
While Harris promises that her tax hikes will only target the wealthy and large corporations, the reality is that the burden will fall on everyday Americans. The increased enforcement by the IRS is expected to extract $20 billion from working-class Americans, directly contradicting the Biden-Harris administration’s pledge not to raise taxes on those making less than $400,000 per year.
For retirees and those nearing retirement, the impact could be even more severe. The quadrupling of the tax on stock buybacks, for example, would directly affect 401(k)s and other retirement accounts, reducing the value of investments that millions of Americans rely on for their retirement. Moreover, the proposal to increase the capital gains tax to 44.6% would discourage investment in the stock market, further eroding the wealth that many Americans have accumulated over a lifetime of hard work.
The Perils of “American Peronism”
Economist Daniel Lacalle has compared Harris’ economic plan to the Peronist policies that bankrupted Argentina—a fitting analogy given the striking similarities. Like Peronism, Harris’ plan is built on the pillars of high taxes, extensive government intervention, and price controls, all funded by printing more money and devaluing the currency. This approach, Lacalle warns, will lead to massive deficits, skyrocketing debt, and persistent inflation that erodes the purchasing power of every American.
The Congressional Budget Office (CBO) has already projected that the U.S. will face an annual deficit of 6% of GDP by 2034, even without Harris’ new spending plans. Adding her proposed $2.25 trillion in spending to this equation would push the deficit to unsustainable levels, potentially leading to a debt crisis that could cripple the economy for generations.
Conclusion: A Call to Fortify Your Wealth
Kamala Harris’ tax hikes and economic policies represent a fundamental shift away from the principles of free-market capitalism that have driven American prosperity. These proposals threaten to weaken small businesses, discourage investment, and place an enormous burden on American families and retirees. As we face this looming economic catastrophe, it is crucial for Americans to demand a return to policies that promote growth, innovation, and opportunity for all.
As the government continues to push for higher taxes and increased spending, diversifying your IRA or 401(k) into gold and other precious metals is more critical than ever. Gold has historically served as a reliable shield in times of economic turmoil, and it can help strengthen your savings against the devastating effects of inflation and government overreach.
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