Larry Kudlow, the former Chief of the National Economic Council under President Trump, summed it up nicely in his television show on Tuesday: It’s so easy for a pollster to ask a voter something like “Well, why not tax the rich or rich corporations or rich investors or rich inheritances?” A lot of voters will shrug their shoulders and say, “Sure, go get them.” But when it turns out that there's an economic cost in the form of lower jobs, then opinions change.
Raising taxes is never a popular measure. On one hand, taxes are necessary to fund government services and reduce the national debt. Many argue that higher taxes result in a shrinking economy and fewer jobs. With job sensitivity hovering at 54% last month, the prospect of limited job opportunities is worrisome.
There are merits to both sides, but a grim employment scenario drastically affects how Americans feel about a tax increase.
Larry Kudlow collaborated with the latest TIPP Poll to gauge Americans' opinion of the proposed tax hikes.
First, the survey asked if respondents support increasing corporate tax, capital gains tax, and estate tax.
A follow-up question asked if they would support the same tax increase if it resulted in the loss of jobs. The survey found that numbers supporting the hike dropped significantly across the board.
Corporate tax accounted for about 7% of federal revenue in 2019. The TIPP Poll asked over 1,400 Americans whether they supported or opposed a corporate tax increase. A fair share of respondents answered in the affirmative. The data reads:
- 60% Support
- 25% Oppose
- 15% Not Sure
Further analysis shows that while 75% of Democrats support the hike, only 56% of Independents and even fewer, 48% of Republicans agree. 70% of those with a college education and almost an equal portion, 69% of those with above $75000 income welcomed the move.
At the mention of job losses as a result of the proposed tax hike, support fell drastically. The data shows:
- 44% Support
- 42% Oppose
- 13% Not Sure
While support still stood at 60% among Democrats, 61% of Republicans and 44% of Independents opposed the move. Loss of support was seen among the high-income and college-educated demographic groups.
Capital Gains Tax
Asked if they support or oppose increasing capital gains tax, far fewer respondents favored the move. The data reads:
- 47% Support
- 33% Oppose
- 19% Not Sure
Half the Republicans opposed the move, as did 40% of Independents. Less than one-fifth, 18% of the Democrats were not in favor of such a hike. Again, the college-educated and those with incomes above $70000 were mostly in favor of the move, polling 57%, and 55%, respectively.
When asked to factor in job losses due to the capital gains tax hike, support eroded considerably. The poll shows:
- 37% Support
- 47% Oppose
- 16% Not Sure
The 14 point rise in opposition is also reflected among the Republicans and Independents whose opposition numbers rose to 65% and 52%, respectively.
The tax increase that got the least support in the TIPP Poll survey was the Estate Tax.
Though estate taxes apply only if the deceased person's assets are worth $11.70 million or more at present, not many Americans want the state to benefit from the death of a loved one. The TIPP Poll recorded a significant portion was opposed to an increase in estate tax.
- 28% Support
- 58% Oppose
- 15% Not Sure
If the estate tax hike resulted in job losses, the already low support base slipped further. The numbers read:
- 26% Support
- 60% Oppose
- 14% Not Sure
In The End
To recover from the pandemic and regain lost momentum, Americans need jobs and opportunities for a fresh start.
Instead of letting tax raises fester as a divisive, bipartisan issue, economists, analysts, and the government should come together to create a way forward that balances the long-term and short-term goals of the nation and its people.
The U.S. Department of State reiterated that the use of force by any party to change the "status quo" across the Taiwan Strait would be a "profound mistake."
The U.S. Secretary of State Antony Blinken was quoted as saying: "It would be a profound mistake by any party to try and remake that 'status quo' with the use of force."
China was not mentioned, but the statement was seen as a veiled message to Beijing.
The U.S. National Security Council Indo-Pacific Coordinator Kurt Campbell told the Asia Society Policy Institute, during a videoconference, that any Chinese move against Taiwan would be "catastrophic." He said that the administration of U.S. President Joe Biden was sending a clear message of deterrence against Chinese aggression in the Taiwan Strait.
Turkey's offer to provide security at Hamid Karzai comes amid efforts by the two governments to mend relations.
U.S. Secretary of Defence Lloyd Austin and his Turkish counterpart Hulusi Akar held a "constructive and positive" meeting to ensure the secure operation of Hamid Karzai International Airport in Afghanistan, the Turkish Defence Ministry said.
Turkey has offered to police the airport after NATO's withdrawal from the country on the condition that its allies provide financial, political, and logistical support.
The airport's security is seen as key to the safe operation of diplomatic missions in Afghanistan after the withdrawal.
The move is likely to reduce public trust in the Chinese product that has been their main inoculation tool.
Some countries, including Turkey and the United Arab Emirates, have already started giving a booster shot to those inoculated with Chinese vaccines amid concerns that they may not be as effective against new and more transmissible coronavirus variants.
While some real-world data showed the Sinovac vaccine is effective against hospitalization and severe COVID-19 cases, there is no detailed data yet on its effectiveness against the Delta variant, first identified in India.
Thailand, which expects to receive a donation of 1.5 million Pfizer-BioNtech (PFE.N), (22UAy.DE) shots from the United States later this month, plans to use it in inoculating its 700,000 medical workers. Most of them have already received two shots of Sinovac.
Polar biologists stumbled upon a species of moss during an expedition to the ice-covered continent in 2017.
The biologists, based in the Central University of Punjab, have named the species Bryum Bharatiensis. Bharati is the Hindu goddess of learning and the name of one of India's Antarctic research stations.
After collecting the samples, the Indian scientists spent five years sequencing the plant DNA and comparing its form with other plants. So far, more than 100 species of moss have been documented from Antarctica, the driest, coldest and windiest continent.
The scientists found that this moss mainly grew in areas where penguins bred in large numbers. Penguin poop has nitrogen. "Basically, the plants here survive on penguin poop. It helps that the manure doesn't decompose in this climate," said a polar biologist on the team.
Sign in or become a tippinsights member to join the conversation.
Just enter your email below to get a log in link.