Harris vs. Trump Tax Plans: 2024 Presidential Election

Harris vs. Trump Tax Plans: 2024 Presidential Election

By: Jarrod Galassi

Taxpayers will likely find few surprises in the two major candidate’s tax policy stances. Given former President Donald Trump pushed through sweeping tax reform changes during his term, we can expect to see his campaign standing behind those policies. The recency of Harris’s campaign should also be taken into account. Her campaign may take time to establish any unique positions that differ from the existing Biden campaign policies. We will continue to update this article as the candidates announce new details on their tax policy stances.

Kamala Harris (D)

Vice President Kamala Harris has largely built her tax platform upon Biden's platform. With Harris now stepping in as the Democratic nominee, she has begun outlining tax policies independent of her tenure with the Biden Administration.

Individual Income Tax:

1. Increase the top marginal tax rate to 39.6% on income over $400,000 for single filers and $450,000 for joint filers
2. The temporary provisions of the Tax Cuts and Jobs Act (TCJA) would be extended for taxpayers earning less than $400,000
3. Increase the net investment income tax to 5% on income over $400,000
4. Net investment income would include nonpassive income
5. Tips earned by workers would be exempt from income tax

Capital Gains and Qualified Dividends

1. Long term capital gains and qualified dividends would be taxed at ordinary income tax rates when taxable income exceeds $1 million
2. Unrealized capital gains above $5 million would be taxed upon death ($10 million for joint filers)
3. Unrealized capital gains above $100 million would be taxed at 25%
4. Carried interest would be taxed at ordinary income rates

 Tax Credits:

1. Make the child tax credit fully refundable on a permanent basis
2. Increase the child tax credit to $3,600 for younger children, and $3,000 for older children
3. Increase the earned income tax credit (EITC) for workers without children

Corporate Income Tax:

1. Increase the corporate income tax rate to 28%
2. Global intangible low-taxed income (GILTI) would be taxed at an increased rate of 21%

 Excise Taxes:

1. Increase stock buyback excise tax to 4%

Donald Trump (R)

Former President Donald Trump enacted sweeping tax reform legislation in 2017 through the Tax Cuts and Jobs Act (TCJA). His campaign’s current tax policies largely stand behind the provisions of TCJA.

Individual Income Tax:

1. Expiring provisions of TCJA would become permanent
2. Proposals to offset personal income taxes with increased tariffs
3. Tips earned by workers would be exempt from income tax
   

Tax Credits:

1. Proposal to increase the child tax credit to $5,000 

Corporate Income Tax:

1. Decrease corporate income tax rate to 20%

Excise Taxes:

1. Tax large private university endowments

Source: Tax Foundation