Kamala Harris: Tax armageddon: That’s what Americans will face if Kamala Harris wins US elections

Americans could be hit with a significant tax increase, if Kamala Harris is elected president, particularly in the realm of inheritance. Her proposed changes to estate tax rules could dramatically lower the threshold at which Americans pay taxes on inherited assets, potentially triggering what many are calling a “tax armageddon” Harris’s plan aims to drop the estate tax threshold from $13.6 million to $3.5 million and eliminate the “step-up basis,” a provision that currently allows heirs to inherit properties without paying capital gains tax.

Will Americans fall in trouble surrounding Harris’ prospective tax plans?

Many wealthy Americans are already moving their assets to their children through gifts to avoid the looming tax hike, which could take effect by mid-2025 if Harris wins the election. The policy proposals echo those initially suggested by Joe Biden during his 2020 campaign.

Under Harris’s proposal, estates worth over $3.5 million would face a 55% estate tax, and heirs would also face capital gains taxes when they sell inherited properties. For example, a $20 million property could see taxes rise from $3.5 million to $13.2 million due to $9 million in estate taxes and $4.2 million in capital gains.

Is Harris’ tax ideas the ‘worst’?

David Lesperance, a financial adviser to wealthy clients, said, “Everybody’s gifting like crazy right now. What’s going to happen is tax armageddon. Every financial adviser right now is saying that you have to use it or lose it. Don’t wait until you die.”

Harris’s administration would also push for the taxation of unrealized capital gains for high-net-worth individuals, a policy that has drawn harsh criticism. Jay Clayton, former SEC commissioner, called it “one of the worst tax ideas floating around.”

While these plans would need to be approved by Congress, where opposition from Republicans is expected, Harris has assured that middle-class Americans won’t face tax hikes. She has pledged that the revenue generated would be used to curb inflation, including with price controls on supermarkets—a proposal Trump has labeled “communist.”

FAQs:

Is Kamala Harris being called a ‘communist’ by Donald Trump?
Kamala Harris’ tax plans are being deemed as being a communist one by Donald Trump, looking at her policies being too weak for the economic reserves. Will the US elections bring in an economic recession?
The United States could see major recession during or after the US election results, something that is already creating major impacts in the stock markets.