While it has only been a month since Vice President Harris was supported by President Biden as the Democratic presidential nominee, many business leaders are eagerly waiting to learn the tax policies that the Harris campaign will present.
While Vice President Harris unveiled her economic plans last Friday for the first time, many questions remain unanswered as to her proposal regarding the Tax Cuts and Jobs Acting (“TCJA”) expiring provisions and how private and family businesses will be impacted by a Democratic Presidency.
Elements of Vice President Harris’ economic plan as it relates to federal income taxes include:
- A tax incentive for builders of homes sold to first-time homebuyers
- An expansion of existing tax incentives for builders of affordable rental housing
- A tax credit for first-time homebuyers
- A restoration of the American Rescue Plan Act version of the child tax credit (CTC) providing up to $3,600 per child
Post-Election Coverage Resources
Donald Trump has won the election, and Republicans have kept the House and won the Senate. Stay updated by following our 2024 Post-Election Coverage Resource Center for crucial insights on tax and legislative developments, helping you navigate the upcoming changes in tax reform and beyond.
Vice President Harris has expressed her desire to continue to support President Biden’s position that taxes on those earning less than $400,000 a year should not be increased.
The table below highlights the differences between Vice President Harris’s and President Trump’s policy proposals. Vice President Harris’s proposals are based on past campaigns and her support of the FY 2025 Biden Budget. However, it will be important to monitor Vice President Harris’s campaign as a more detailed federal tax reform policy should be released over the next weeks.
| President Trump | Vice President Harris* | |
|---|---|---|
| Expiring Individual Income Tax Cuts from the TCJA | Make them permanent, including the maximum individual federal income tax bracket remaining at 37% | Continue for individuals making $400,000 or less, and raising individual federal income tax rates to 39.6% |
| Adjustment of Corporate Tax Rate | 20% | 28% (Announcement on 8/19) |
| Capital Gains & Dividend Tax Rates | No change proposed | Assessing ordinary income tax rates, though it is unclear if only for a subset of taxpayers (i.e. taxpayers with taxable income over $1 million) |
| Estate and Wealth Tax | Make TCJA permanent | Expanding estate tax by decreasing the estate tax exemption |
| Tariff and Trade | Impose a universal baseline tariff on all U.S. imports, with increased tariffs with China | No tariff proposals at this time |
Businesses should monitor the tax policies of both the Republican and Democratic parties to gauge the impact that federal tax reform could have on their future cash outlays of federal income tax payments. In addition, we encourage clients to reach out to their Withum professional service team members to estimate future tax liability payments under the various Democratic and Republican proposals.
Listen to the second episode of our Taxing Topics: Navigating Election Year Podcast Series! We discuss the recent shakeup in the Democratic presidential race, the outlook for the Senate and House elections, and the implications for tax policies affecting private and family-owned businesses.
Outlook for the 2024 Elections
Contact Us
For more information on this topic, please contact a member of Withum’s Business Tax Services Team.
