Donald Trump vs. Kamala Harris Tax Policies
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The tax proposals presented by the two presidential contenders, Donald Trump and Kamala Harris, have sparked heated discussions and careful examination. These proposals could have a substantial effect on both individuals and businesses throughout the country. This article will explore the fundamental elements of Donald Trump's and Kamala Harris's tax strategies in a comparative analysis, enabling different stakeholders to assess the implications for their businesses and the economy.
Policy Aspect | Donald Trump | Kamala Harris |
Individual Income Tax | - Plans to make the Tax Cuts and Jobs Act (TCJA) permanent, extending its lower rates for all incomes. Â - Proposed elimination of tax on Social Security benefits and a $10,000 cap removal on state and local tax deductions. Â - Exemptions for tips and overtime pay from income tax. | - Proposes raising the top marginal rate to 39.6% on incomes above $400,000 (single) and $450,000 (joint). Â - Temporary TCJA provisions would be extended only for incomes below $400,000. Â - Increases net investment income tax to 5% for incomes over $400,000 and includes non-passive income. |
Child and Family Credits | - No new child credit proposals. Â - Focus on indirect relief through lower income taxes. | - Proposes expanding the child tax credit up to $6,000 for newborns, along with increased credits for various age groups. Â - Offers a $25,000 first-time homebuyer credit spread over four years. |
Corporate Tax Rate | - Proposes lowering the corporate tax rate further to 20%, with a 15% rate for U.S.-based production. Â - Seeks to maintain business-friendly provisions from TCJA. | - Plans to raise the corporate tax rate to 28%, impacting higher-income businesses. Â - Increases tax on global intangible low-taxed income (GILTI) to 21%. Â - Raises start-up deduction from $5,000 to $50,000. |
Capital Gains and Dividends | - No major changes in capital gains or dividends tax treatment.  - Continuation of the TCJA’s preferential treatment for long-term gains. | - Tax long-term capital gains as regular income for incomes above $1 million.  - Tax unrealized gains over $5 million at death and treat carried interest as ordinary income. |
Tariffs and Trade Taxes | - Introduces tariffs as a revenue offset: baseline 10-20% on imports, up to 60% for goods from China. | - No direct tariffs; focuses on income and corporate tax adjustments instead. |
Debt and Economic Growth | - Debt could increase by $7.5 trillion over ten years. Potential economic drag due to trade conflicts and retaliation. Â - Projected net GDP decrease of 0.2%. | - Debt increase projected at $3.5 trillion over ten years, with possible GDP reduction of 1.3% due to higher top income and corporate tax rates. |
Trump's tax plan focuses on sustaining and expanding the 2017 TCJA provisions, aiming for further rate reductions and minimal changes to capital gains taxes, which would favor businesses and higher earners. He promised that he’d push for a tax credit for family caregivers (which is not considered in the above comparison due to recent announcement). His proposed tariffs, however, could increase costs for consumers and businesses dependent on imports, potentially countering tax savings​.
Harris’s proposals emphasize raising revenue from corporations and high earners to fund social programs, with benefits like expanded child credits and first-time homebuyer credits for middle-income households. Her corporate tax increases could impact investment but may provide revenue for social initiatives​
note: The information above has been sourced from various references and collected through data gathering. It is not intended to convey any political bias or preference.
