Article Summary –
Kamala Harris proposes increased corporate taxes, expanded child tax credits, and tax cuts for middle-class Americans, emphasizing fair wealth distribution. In contrast, Donald Trump aims to extend tax cuts benefiting the wealthy, potentially increasing deficits, and plans tariffs that may raise consumer costs.
Kamala Harris has proposed increasing the corporate tax rate, expanding the child tax credit, and cutting taxes for more than 100 million working and middle class Americans. Donald Trump, meanwhile, wants to extend tax breaks benefiting the ultra-wealthy and corporations.
As Election Day approaches, voters overwhelmingly declare that the most pressing issue this year is the economy and their financial security.
This year, the economic plans proposed by Democrat Kamala Harris and Republican Donald Trump differ greatly, especially regarding taxes.
Harris supports a billionaire minimum tax and aims to increase the corporate tax rate from 21% to 28%, seeking fair contribution from wealthy Americans. This reverses Trump’s 2017 tax law, which lowered the rate from 35% to 21%, the lowest in a century.
Harris also wants to quadruple the tax on stock buybacks, ensuring investments in workers rather than boosting executive compensations tied to stock performance.
Additionally, Harris vowed to cut taxes for over 100 million working and middle-class Americans, ensuring no tax increases for those earning less than $400,000 annually.
Harris also proposed expanding the child tax credit significantly, offering $6,000 in the first year of a child’s life, $3,600 annually for ages one to five, and $3,000 annually thereafter.
Harris aims to increase the tax deduction for small businesses’ first-year costs from $5,000 to $50,000, aligning with the $40,000 average startup cost.
She also proposes capital gains tax reforms for those earning over $1 million, raising the rate from 20% to 28%.
Harris also intends to eliminate taxes on tips for service and hospitality workers.
Trump’s tax and tariff proposals could hurt families
In contrast, Trump plans to extend his 2017 tax cuts, benefiting the wealthiest Americans and corporations.
Trump also aims to reduce the corporate tax rate from 21% to 15%, which, according to estimates, could cut revenue by $675 billion through 2034, deepening the national deficit.
Trump proposes a government efficiency commission led by Elon Musk to offset costs, though specifics are lacking.
Trump suggests new tariffs, including a 20% tariff on all imported goods and 60% on Chinese imports, potentially raising trillions but imposing a de facto tax on households.
If imposed, tariffs on food could raise prices as grocery stores and consumers absorb costs.
Economists estimate 70,000 fewer jobs monthly due to these tariffs.
Trump plans to exempt Social Security and tip income from taxes, potentially adding $3.6 trillion to $6.6 trillion to US deficits over the next decade.
A new analysis indicates Trump’s plans would result in a tax cut for the richest 5% of Americans but an increase for others.
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