Trump vs. Harris: Tax Policy Showdown

In the 2024 election, Donald Trump and Kamala Harris are shaping their tax policies in starkly different ways that could significantly impact American households and corporations alike. Trump advocates for substantial tax cuts primarily benefiting corporations and higher-income earners, drawing from his previous administration's Tax Bill of 2017, which included significant benefits such as lowering the corporate tax rate from 21% to 15% and eliminating income taxes on Social Security benefits. This move, however, bears a potential cost of over $6.5 trillion over ten years. On the other hand, Kamala Harris aims to provide tax cuts focused on middle and lower-income families while increasing taxes on wealthy individuals and corporations. She has proposed an expansion of the Child Tax Credit and a substantial first-time homebuyer credit, costing approximately $4 trillion over ten years. Harris's tax plan aligns with President Biden's objectives, including increasing the corporate tax rate to 28% and introducing a minimum tax for ultra-wealthy individuals. Both candidates are also presenting plans that could have significant ramifications amidst a divided government where passing tax legislation could be problematic. By the end of the year 2025, if no deal comes through, Americans may face widespread tax increases, impacting nearly 60% of households.