Regulation

Kamala Harris Under Fire For Tax Plan, Pro-Crypto Shift In Vain?

Published

4 weeks ago

August 22, 2024

Kamala Harris Attends Bitcoin Conference.webp.webp

Vice President Kamala Harris faces mounting criticism over her recent economic proposals. The controversy surrounds her backing of President Joe Biden’s ambitious tax plan and her stance on crypto regulation. Moreover, crypto leaders have joined the fray, which puts Harris’ crypto reset efforts in jeopardy.

Backlash Over Kamala Harris’ Tax Plan

Recently, Kamala Harris publicly supported Biden’s historic 44.6% capital gains tax proposal. This plan includes a 25% tax on unrealized gains for high-net-worth individuals. Elon Musk, known for his provocative online presence, responded to the tax plan with a sarcastic “Wow.”

Meanwhile, Anatoly Yakovenko, co-founder of Solana, criticized the proposal as “beautifully communist.” He further argued that it represents a suppression of individual entrepreneurship in favor of benefiting a faceless bureaucratic system.

The Solana co-founder questioned why the VP isn’t focusing on “taxing sovereign funds investing wealth they plundered from millions of people,” Yakovenko tweeted. He continued to express disdain for the tax plan, suggesting it unfairly targets innovators while ignoring other forms of economic activity.

Kamala Harris Donald Trump — Source: Polymarket

Earlier, when Republican candidate Donald Trump regained lead over Harris on Polymarket, Yakovenko expressed optimism. He wrote, “Can’t believe polymarket is selling a full 25% tax on unrealized gains dollar at basically half off.” Currently, according to Polymarket, Trump’s win odds stand at 53% with a 7% lead over Harris.

Adding to the backlash, pro-XRP lawyer Bill Morgan condemned Harris for her proposed tax increases amid rising U.S. bankruptcy filings. Morgan questioned the viability of Harris’ assertion that the economic plan “pays for itself.” He mocked it as an oversimplified solution to complex economic issues. “If only law was that easy,” he quipped.

Leaders Question Harris’ Pro-crypto Shift

In a contrasting move, the Kamala Harris campaign has signaled support for measures to boost growth in the digital asset sector. Brian Nelson, a senior policy adviser, indicated that Harris will support policies aimed at nurturing emerging technologies and industries, including crypto.

With growing criticism over the tax plan, even the pro-crypto shift hasn’t come to Harris’ rescue as crypto leaders questioned her motives. Moreover, critics argue that this stance is undermined by the administration’s heavy-handed regulatory approach.

ETF Store President Nate Geraci expressed disappointment on X. He noted that the current administration’s focus seems to be on regulation rather than encouraging innovation. “Current admin, of which Harris is a part, is decidedly anti-crypto,” Geraci remarked. He added, “There’s always balance between innovation & regulation. Focus has been solely on regulation.”

Furthermore, Charles Hoskinson, founder of Cardano, echoed this sentiment. He questioned the effectiveness and sincerity of Harris’s promises. He criticized the lack of specific policies or actions to support the crypto industry and called for tangible legislative or executive measures. “No specific policy or proposal. Just talk,” Hoskinson said in a post on X.

He added, “What legislation do you support? What executive actions will be issued? Why haven’t you changed the policy RIGHT NOW?” The Cardano founder also called for Kamala Harris to fire SEC Chair Gary Gensler.

Economic Plan Labeled As ‘Disastrous’

Harris’ recent speech at the Democratic National Convention further fueled the debate. She outlined her plan to combat price gouging on food and support smaller businesses. “My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” Harris stated.

Critics, however, argue that such measures might not address broader inflationary pressures. They fear it could exacerbate existing economic challenges. In an interview on The National Desk, Trump Campaign National Press Secretary Caroline Levitt lambasted Harris’s economic proposals.

She labeled them as detrimental to the American economy. Additionally, Levitt argued that price controls and increased corporate taxes would harm American businesses and lead to job losses. “Kamala Harris wants the Federal Government to tell grocery stores in Michigan and Pennsylvania how much they can price their bread,” she said. Levitt added, “It is a disastrous plan.”

Moreover, Levitt criticized the administration’s handling of inflation and regulatory policies. She attributed rising costs and economic strain to Harris and Biden’s policies. She emphasized that American voters are feeling the repercussions of these policies, with increased costs of living and economic uncertainty. “Working families struggling to afford their mortgages, which have increased by 50% in Kamala Harris’ America,” Levitt noted.