How would Kamala Harris’ tax proposals affect the income of Americans?
Vice President Kamala Harris’ tax proposals aim to benefit low-income earners, unlike Donald Trump’s plan, which would benefit richer Americans most.
With just two months to go before the November election in the United States, the country’s presidential candidates, Donald Trump and Kamala Harris, have presented their respective campaign promises, which include different tax proposals.
While both proposals aim to ease the financial burden on taxpayers, each candidate’s vision will affect voters’ paychecks differently. For example, Trump’s tax proposal is intended to help mostly higher-income taxpayers. In contrast, his rival’s plan would benefit lower-income taxpayers.
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How would Kamala Harris’ tax proposals affect the income of Americans?
Harris is committed to following in President Joe Biden’s footsteps by avoiding tax increases for those making $400,000 or less a year. This income bracket represents the majority of taxpayers. The cost of this measure would be offset by increasing the top marginal income tax rate for the top 1% of earners. That rate would rise from 37% to 39.6%, which would demand more from higher-income residents.
Harris also proposes raising the corporate tax rate and implementing broader benefits for the neediest families, as well as making tips tax-free for workers in the hospitality and service industries.
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How much would Harris’ tax plan cost the US?
According to CBS News analysts, Harris’s tax proposal could add $2 trillion to the federal deficit over the next decade. While this is a large figure, it is still below what Trump’s tax plan would cost, which would be $5.8 trillion, per projections.
According to numbers from the Congressional Budget Office, the budget deficit for 2024 is expected to reach $1.9 trillion, so the proposals of both candidates have already set off alarm bells among analysts and experts on the subject.
“We’re basically on this explosive path right now,” Kent Smetters, faculty director of the Penn Wharton Budget Model, told CBS News. “None of the candidates are seriously considering addressing the big issue: The house is on fire and the candidates are arguing over the furniture.”