Tax cuts and credits are the main focus when it comes to how the upcoming election could impact your finances. Here’s a breakdown of the key tax proposals from both candidates:
Harris’s Tax Plans:
- Expanding the Child Tax Credit
- Taxing the wealthiest Americans and corporations
- Expanding the tax deduction for new small businesses
- Expanding the earned income tax credit
- Making permanent the tax credit enhancements for Affordable Care Act plans
- Implementing tax cuts to incentivize home builders to build affordable homes
Trump’s Tax Plans:
- Extending the soon-to-expire 2017 Tax Cuts and Jobs Act
- Ending taxes on overtime and Social Security
- Applying tariffs on all foreign imports, with specific rates for China and cars made in Mexico
- Lowering the corporate tax rate to 20%
- Implementing R&D tax credits for businesses in their first year
- Replacing income taxes with import tariffs
The looming expiration of the 2017 tax cuts at the end of 2025 is a major concern for both candidates. Both Harris and Trump have proposals to address this issue, but the details are still being worked out.
In terms of overall tax policies, Harris aims to raise more revenue from the wealthy and corporations, while Trump’s approach focuses on tax cuts that benefit the wealthy and corporations. Both candidates have proposals that could help middle-class families, but Harris’s plans generate more revenue to fund programs that benefit middle-class families.
It’s important to note that any proposed tax changes would need to go through Congress before being implemented. With a divided Congress, it’s unclear which proposals would have bipartisan support.
When it comes to the economic impact of their tax plans, projections suggest that Harris’s proposals would increase deficits by $1.2 trillion, while Trump’s proposals would increase deficits by $5.8 trillion over a 10-year period.
Overall, both candidates have ambitious tax plans that could significantly impact the economy and individual taxpayers. The details of these plans will be crucial in determining their feasibility and potential benefits for the American people.