In the 2024 presidential election, tax policy is a significant focus for both candidates, with contrasting proposals from former President Donald Trump and Vice President Kamala Harris. Here is a brief overview from what we have read:
Donald Trump:
- Trump aims to extend and deepen the Tax Cuts and Jobs Act (TCJA), making individual tax cuts permanent. He has not yet specified many details but wants to lower corporate taxes further, potentially reducing the rate from 21% to 20%.
- He has also proposed eliminating payroll taxes on tips for workers in hospitality and restaurant industries and would exclude overtime pay from taxation.
- For seniors, Trump has mentioned plans to exempt Social Security benefits from taxation.
Kamala Harris:
- Harris supports increasing taxes on wealthier individuals and businesses, aligning with President Biden's tax policies. She has proposed increasing the top marginal income tax rate for high earners (over $400,000) back to 39.6%.
- She advocates for raising the corporate tax rate to 28% and increasing the corporate minimum tax to 21%. Harris has also suggested taxing unrealized capital gains for individuals with a net worth above $100 million and aligning capital gains taxes with ordinary income tax rates for those earning more than $1 million.
- Additionally, she plans to expand the Child Tax Credit (CTC), increasing it to as much as $6,000 for qualifying children, and boosting the Earned Income Tax Credit (EITC) for low-income workers.
These proposals reflect stark differences in their approaches: Trump's tax plans focus on reducing taxes to stimulate business growth and retain the benefits of his earlier reforms, while Harris’s proposals focus on raising taxes for the wealthy and corporations to fund expanded social programs and benefits.
Sources & for more information:
https://taxfoundation.org/tags/2024-election/
https://uhy-us.com/insights/2024/october/taxes-take-center-stage-in-the-2024-presidential-campaign
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