Joe Biden’s tax plan would reduce stock values by 20% to 25%, according to a new analysis conducted by an economic adviser to President Trump.
“This is the biggest assault on investors in 50 years,” Stephen Moore, an outside economic adviser to Trump and a member of his economic recovery task force, said in a statement to the Washington Examiner.
“The three stock killers are the corporate tax rise, the cap gains increase, and the death tax on stocks,” said Moore, who also serves as an economist at the conservative advocacy organization FreedomWorks and is a contributor to the Washington Examiner.
Moore’s analysis shows Biden’s “progressive tax rates” would result in the corporate tax rate increasing to 28%, from 21% currently, and the capital gains tax jumping to 39.6% from 23.8%. Moore said that taxes for small businesses and income and payroll taxes would also increase under Biden’s tax plan.
[Also read: Biden no tax increase pledge contradicts campaign plan]
With a new “Buy American” economic plan released earlier this week, Biden is trying to peel working-class voters away from Trump with a COVID-19 economic recovery pitch that echoes the incumbent’s nationalist “America First” policy agenda.
Biden’s proposal is a two-pronged criticism of Trump. It aims to undermine the president’s economic message, already hurt by his response to the coronavirus. It’s also an attempt to erode Trump’s support among working-class voters who were pivotal to his White House win four years ago over then-Democratic rival Hillary Clinton.
Trump and his supporters, like Moore, are therefore trying to push back. Moore claims that “Biden’s Good-Bye America Tax Plan” would be a “disaster for stocks.”
