Welcome to BW’s Smart Money podcast! In this episode, we explore how the 2024 presidential candidates’ tax plans could impact your finances and what you should know before voting. Hosts Sean Pyles and Anna Helhoski discuss the key differences in the candidates’ tax plans and provide tips on understanding credits, deductions, and the long-term effects of tax laws on your paycheck. They also talk to Amy Hanaeur, the executive director of the left-leaning Institute on Taxation and Economic Policy, about the candidates’ specific tax proposals, including cuts to corporate taxes, extensions of expiring tax cuts, child tax credits, and eliminating taxes on Social Security benefits. Check out this episode on your favorite podcast platform and explore related BW stories. The rating is determined by BW’s editorial team, taking into account coverage options, customer experience, customizability, cost, and more. The rating formula takes into account coverage options, customer experience, customizability, cost, and more factors. The rating system considers coverage options, customer experience, customizability, cost, and more to determine the final score for each loan provider. The formula for scoring takes into account coverage options, customer experience, customizability, cost, and additional factors. At times, making the right choice involves selecting the appropriate credit card for your financial needs, while other times it means voting for the candidate who aligns with your life and financial goals. We value your opinions as well, so please share your thoughts on the election and personal finances by leaving a voicemail, texting the Nerd hotline at 901-730-6373, or emailing a voice memo to [email protected] Anna, who will be helping us navigate tax policy today? Today, we are joined by Amy Hanaeur, the executive director of the left-leaning Institute on Taxation and Economic Policy, to discuss the varying tax plans of Kamala Harris and Donald Trump. Amy highlights the stark contrasts between their proposals, with Harris focusing on revenue generation from the wealthy and corporations, and Trump leaning towards tax cuts that primarily benefit the affluent. Harris’s plans include innovative policies like the child tax credit and tax breaks for small businesses and first-time homebuyers, which Amy deems effective and necessary. On the other hand, Trump aims to extend and further lower corporate tax rates, a move that could exacerbate income inequality and reduce government revenue. The conversation delves into the specifics of each candidate’s tax proposals and their potential impact on the economy and society. The temporary aspect of the 2017 tax law was due to its high cost and the difficulty of passing it with only one party’s support. The individual tax cuts were made temporary to stay within Congress’s overall cost limit. Former President Trump aims to extend all individual tax cuts from that law. Kamala Harris has stated that under her tax plan, those earning less than $400,000 will not pay more. She plans to extend tax cuts for lower earners but phase them out for those making over $400,000. The 2017 law provided significant tax cuts to the top 1%, with the Trump campaign seeking to make these cuts permanent, benefiting the wealthiest Americans. Trump’s proposed tariff policy would impact consumers, with economists estimating substantial costs for households. The Biden administration has maintained Trump’s tariffs, with Harris not expressing much on the issue. Trump’s proposal to eliminate the Social Security tax would reduce taxes for households but result in significant revenue loss for Social Security and Medicare, potentially leading to benefit cuts for millions of recipients. The Tax Policy Center has not yet estimated the exact nature of the benefit reductions, but it is known that Social Security is a critical social program that helps lift a significant number of people out of poverty. It has been instrumental in improving the financial situation of the elderly, who used to be the poorest age group in the United States. Social Security is a vital part of our social safety net and plays a crucial role in our society. What remains uncertain at this moment is which campaign promises will garner bipartisan support as we transition to a new administration and a different congressional composition.
Tax policy is a complex and intricate subject, with changes in one area potentially triggering significant, and sometimes unintended, repercussions in other areas. For instance, implementing a tax credit for first-time homebuyers, as proposed by Harris, could lead to increased home prices. Similarly, Trump’s tax cuts were found to exacerbate racial and wealth disparities. These examples underscore the intricate nature of tax policy and the importance of engaging with it, especially considering that several provisions of the Tax Cuts and Jobs Act of 2017 are set to expire in 2025. This presents a unique opportunity for us to reshape tax policies, with our votes playing a crucial role in the process.
Amy Hanaeur touched on the no tax on tips policy endorsed by both Trump and Harris, a topic that we have previously explored in an episode. Listeners can refer to our August 21st episode for more insights on this subject, which will be linked in the show notes for easy access.
Looking ahead to the final episode of the series, we will delve into two significant policy areas that impact a vast number of voters: student loans and healthcare.
The fate of the repayment plan currently rests largely with the courts, although the president can influence the situation by guiding the Justice Department on how to handle appeals. Harris is likely to defend the SAVE plan vigorously in court, while Trump is unlikely to support it.
That wraps up this episode. If you have any financial queries of your own, reach out to the Nerds by calling or texting us at (901) 730-6373 or emailing us at [email protected] Remember to follow the show on popular podcast platforms like Spotify, Apple Podcasts, and iHeartRadio for automatic episode downloads.
This episode was produced by Tess Vigeland and Anna, with assistance from editing, fact-checking, and audio mixing. Special thanks to BW’s editors for their contributions.
A quick disclaimer: We are not financial or investment advisors. The information provided here is for general educational and entertainment purposes and may not be applicable to your specific situation.
Until next time, stay tuned to the Nerds. Please rewrite the sentence for me. following sentence: “The cat sat lazily in the sunbeam.”
“The lazy cat lounged in the warm sunbeam.” text to make it more engaging and concise:
“Transform your writing style to captivate your audience.” sentence:
The wind howled through the trees, creating an eerie and haunting sound.
The trees were filled with the haunting sound of the wind as it howled through them.