Americans Support Raising Capital Gains And Corporate Taxes But Oppose Raising The Estate Tax

Americans Support Raising Capital Gains And Corporate Taxes But Oppose Raising The Estate Tax

The article presents findings from an IBD/TIPP Poll on three tax proposals. Sixty-five percent favor a higher capital gains tax rate, and another 54% favor increasing the corporate tax rate to 28%. However, 50% oppose increasing estate taxes.

Raghavan Mayur
Raghavan Mayur

65% support higher capital gains tax rate for couples earning more than $1 million annually.  Another 54% favor raising the corporate tax from 21% to 28%. However, 50% oppose increasing the estate taxes on a person's assets after death.

The Investor's Business Daily/TIPP poll in early April included the three proposals that the Biden administration was considering at the time.

IBD released the findings on Wednesday, April 28, to coincide with President Biden's State of the Union address to Congress.

President Biden's tax proposal includes increases in corporate and capital gains taxes to help finance his $1.8 trillion American Families Plan.

Raising The Corporate Tax From 21% to 28%

In his Wednesday speech, President Biden quoted a recent study that showed that 55 of the nation's biggest corporations paid zero in federal income tax last year.

He said, "A lot of companies evade taxes through tax havens from Switzerland to Bermuda to the Cayman Islands. And they benefit from tax loopholes and deductions that allow for offshoring jobs and shifting profits overseas."

According to our poll, by a 54 percent to 33 percent margin, Americans favor raising the corporate tax.

  • 28% support strongly
  • 26% support somewhat
  • 15% oppose somewhat
  • 18% oppose strongly

Democrats support it by a margin of 73% to 18%.  Republicans oppose it 57% to 32%.  Independents support it 51% to 37%.

Higher Capital Gains Tax Rate

On increasing capital gains, President Biden said, "We're going to get rid of the loopholes that allow Americans who make more than $1 million a year pay a lower rate on their capital gains than working Americans pay on their work.   This will only affect three-tenths of 1% of all Americans."

Nearly two-thirds (65%) in our poll support the move, while 23% oppose it.

  • 37% support strongly
  • 28% support somewhat
  • 10% oppose somewhat
  • 13% oppose strongly

According to a new study from the University of Pennsylvania's Wharton Business School, wealthy Americans will evade paying 90% of President Joe Biden's proposed $1 trillion investment tax increase.

"We don't think that the proposal has a lot of teeth," said John Ricco, director of policy analysis at the Penn Wharton Budget Model, a non-partisan fiscal policy research group at the business school. "There are a lot of games you can play to avoid paying this tax."

Larry Kudlow, the Director of the National Economic Council under President Trump, says he has his doubts about the plan and calls it terrible policy. "It will surely throw a wet blanket on our booming economy."

Expanding The Estate Tax

Expanding the estate tax is the least popular idea tested in our poll. One-half (50%) oppose the idea, while 35% support it. The intensity of opposition is high, with nearly one-third (31%) opposing it strongly.

  • 17% support strongly
  • 19% support somewhat
  • 19% oppose somewhat
  • 31% oppose strongly

Larry Kudow is pessimistic about the tax increases:  Here is the last laugh. Team Biden this, is so wonderful, expects to raise $780 billion in new tax revenues. Now, I've seen this movie before. Believe me, folks, they're not going to get half of that. They might not even get a third of that. It has been tried many times and utterly failed.

We are skeptical of raising taxes during a pandemic when the American economy and businesses are barely surviving is the prudent course of action. It could act as a deterrent to capital investment and much-needed job growth.


If you enjoy what you read, please consider subscribing for $99 a year.  If you want to discuss your research needs, please contact us.


TIPP Takes

Afghanistan: Does U.S. Exit Offer Russia A Chance To Fill Power Vacuum?

  • U.S. departure from Afghanistan will pave the way for regional powers to increase their clout in the war-ravaged country.
  • While U.S. diplomacy will continue to play a central role, Russia will be paying closer attention to instability and a power vacuum on its southern doorstep.
  • In 2001, when the U.S. invaded Afghanistan, Russia was forced to watch a major U.S. troop presence build on its southern border. Experts agree that Moscow is relieved at the U.S. withdrawal.
  • Although the U.S. and Russia are both interested in keeping Afghanistan from falling into civil war, Moscow is unlikely to support any continued NATO presence in the country overtly.

Saudi Crown Prince Strikes Conciliatory Tone Towards Rival Iran

  • Saudi Arabia's crown prince Mohammed bin Salman has struck a conciliatory tone towards the kingdom's arch-nemesis, Iran, saying he sought "good" relations after reports the rivals held secret talks recently in Baghdad.
  • Riyadh has officially denied the talks in its state-backed media, while Tehran has not commented.
  • The two countries, locked in a fierce struggle for regional dominance, cut ties in 2016 after Iranian protesters attacked Saudi diplomatic missions following the kingdom's execution of a revered Shia cleric.

Australia Warns Google And Apple Over App Stores

  • The Australian Competition and Consumer Commission (ACCC) said measures are needed to address Apple and Google's app store dominance.
  • It's the latest move by Australia to rein in big tech's market power.
  • App makers have criticized Apple's App Store and Google's Play Store for mandatory revenue sharing payments.
  • Australia isn't the only jurisdiction to look into the market dominance of Google and Apple's app stores.

Turkey Signs Deal For 50 Million Sputnik V Coronavirus Vaccines

  • Turkey has signed a deal for 50 million doses of Russia's Sputnik V COVID-19 vaccine that will start arriving next month and should help address a short-term fall in supply, said Health Minister Fahrettin Koca.
  • The Russian Direct Investment Fund (RDIF) said Turkish pharmaceutical firms would also produce Sputnik V COVID-19 vaccine at its plants.
  • Turkey has carried out 22 million vaccinations, with 13.55 million people have received the first dose.

Farmer-Herder Crisis In Nigeria's Middle Belt Could 'Blow Up Into A Civil War'

  • Nigeria's Middle Belt is witnessing a spike in farmer-herder violence, which in 2018 was six times deadlier than the Boko Haram insurgency.
  • Farmers and herders have crossed paths for decades, as pastoralist Fulanis from the north have a long tradition of migrating south during the dry season in search of water and grazing land for their cattle.
  • Increased drought and desertification have forced herders even further south and into conflict with farmers.

Comments

Sign in or become a tippinsights member to join the conversation.
Just enter your email below to get a log in link.