by (Reuters) -Sus vice-president Kamala Harris has announced a basket of economic proposals to reduce livelihood for Americans in the middle and lower class and the economy generally stimulating by using tax stimuli and other tax shifts.
Some of her ideas build on unfinished things in the economic agenda of President Joe Biden, but expand their reach and size.
This is what we know so far:
Industrial stimuli
On Wednesday, Harris has promised new tax credits to stimulate and invest more domestic production in sectors that “define the next century”, including biomanufacturing, space travel, artificial intelligence, quantum computing and blockchain, advanced nuclear energy and batteries.
She also said that she would offer tax stimuli for expanding “good union courses” in long -standing iron, steel, coal and other traditional industrial communities. Details about the size and scope of the stimuli and investments were not announced.
Harris announced new investments in US Basic Technology Research, via the National Science Foundation, the National Laboratories and other institutions of the Department of Energy.
She also announced plans to cut bureaucracy to speed up the construction of new infrastructure and industrial projects and to use the Defense Production Act and other tools to increase American capacity to process critical minerals and to depend on the dependence from China reduce.
Tax on the rich
Harris has repeated the promise of Biden not to levy taxes on households that earn less than $ 400,000 a year.
She has quietly endorsed the majority of the nearly $ 5 trillion of tax increases for a decade in the tax budget proposal of BIDEN 2025, which would increase the highest rate of income tax to 39.6% of 37%.
These include a new minimum load of 25% on people with fortunes of more than $ 100 million, including on non -realized capital wins. For those who earn more than $ 1 million annually, Harris proposed to increase the tax rate in the long term that were paid after selling assets such as shares up to 28% of 20%, an increase much smaller than 39.6% Full rate in the top tax presented by Biden.
Tax on companies
Harris has proposed to increase the rate of corporation tax to 28%, as a result of which the former president and the Republican rival Donald Trump partially reversed the 2017 tax legislation of Donald Trump, which has reduced the company’s tax rates to 21%of 35%. The step would yield $ 1 trillion for the federal government for more than ten years, estimate budget experts, but in business profits, says Wall Street.
Large American companies pay a much lower effective tax rate than their foreign competitors with an average of 16%, according to an analysis of Reuters. All changes in broad corporation tax should be assumed by the congress.
