‘This path leads to bread lines and ugly shoes,’ says Elon Musk on price controls and potential tax policies Kamala Harris

In a recent exchange on Twitter, Elon Musk sparked the conversation by commenting on Kamala Harris’ proposed economic policies, specifically targeting her ideas on price controls and new taxes. Responding to a tweet purportedly outlining Harris’ proposed policies, including a 28% corporate tax, a 44.6% capital gains tax and a 25% tax on unrealized gains, Musk joked: ” This path leads to rows and ugly shoes”.

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VP Harris has been clear about his goals to reduce income inequality and hold big corporations accountable. Her plan includes significant tax increases for the wealthiest Americans and the largest companies. She said: “Look, I know most businesses create jobs, contribute to our economy and play by the rules. But some aren’t, and it’s just not fair. And we need to take action when that’s the case.”

She also pointed out that many large food companies are posting their highest profits in two decades. While many grocery chains pass on these savings, others still don’t.

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People who support Harris’ plan say ordinary Americans need these changes as the gap between the rich and everyone else widens. They believe that by making the wealthiest Americans and big corporations pay more in taxes, the government can fund important services, reduce the national debt, and help middle- and low-income families.

So what exactly is Musk reacting to? For example, she supports raising the corporate tax rate to 28%. This is a step up from the current rate of 21% set during the Trump administration. The goal is to ensure that large corporations contribute more to the federal budget.

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She also supports a proposal to tax capital gains — profits from investments — at 44.6 percent for those earning more than $1 million annually — a significant increase that would make the U.S. capital gains tax be one of the largest in the world.

Finally, Harris supports a 25 percent tax on unrealized gains. This means that even if someone did not sell an investment, they could still be taxed on the increase in its value. This policy mainly targets the ultra-wealthy, especially those with more than $100 million in assets.

Price controls, where the government sets limits on how much companies can charge for products and services, have in the past led to shortages and lower-quality goods and services. Opponents need look no further than Cuba, Venezuela, North Korea or the Soviet Union, where similar policies led to empty shelves, long bread lines and ugly shoes, as Musk put it.

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This article ‘This Path Leads to Bread Lines and Ugly Shoes,’ Elon Musk Says About Kamala Harris’s Price Controls and Potential Tax Policies, originally appeared on Benzinga.com

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