Pierre Ferragu, an analyst at New Street Research, expressed strong opinions about the Democratic Party’s current state on X, formerly known as Twitter.
What Happened: According to Ferragu, many Democrat supporters are in “complete denial” about the party’s transformation. He stated, “The Dems have become the bad guys on too many fronts for you to ignore it.” This comment follows a poll he conducted on a controversial tax proposal.
Ferragu’s poll addressed the feasibility of a tax on unrealized gains, which he deemed “IMPOSSIBLE to implement.” He offered two explanations for the proposal: either the candidate is “too dumb to understand this” or they believe their voters are “too dumb to understand this.” The poll received 2,170 votes, with 62.3% agreeing with the latter option.
At the Democratic National Convention in Chicago, Kamala Harris outlined her tax policies, which include raising the federal corporate tax rate from 21% to 28%. This proposal contrasts sharply with her opponent Donald Trump‘s pledge to lower it to 15%.
The increased revenue from the tax hike is intended to fund economic initiatives, such as a $6,000 tax credit for parents of newborns and the reinstatement of the expanded Child Tax Credit. Harris supports a 25% minimum tax on unrealized gains for individuals with income and assets exceeding $100 million.
See Also: Federal Reserve May Be Prompted To Pause Rate Cuts In Reponse To Supply Side ‘Shocks,’ Says Expert
Why It Matters: Ferragu’s criticisms come amid growing discontent among various sectors regarding Harris’s proposed tax on unrealized gains. Wall Street has labeled the proposal as a “dumb move,” arguing it discourages long-term investment.
Additionally, Silicon Valley’s elite have voiced concerns, fearing the tax could stifle innovation and economic growth. Prominent investors and tech leaders are unsettled by the potential financial impact.
Even hedge-fund manager Bill Ackman has weighed in, suggesting a more “fair and practical” approach to taxing the ultra-wealthy. Ackman believes Harris’s plan could have unintended consequences for the economy.
Adding to the controversy, Elon Musk criticized Harris’s economic policies, including her proposed tax rates. Musk warned that such policies could lead to economic hardship, comparing it to “bread lines & ugly shoes.”
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
