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Kamala Harris's Stance on Taxes
Vice President Kamala Harris has historically favored more substantial tax increases on businesses and high earners compared to President Biden. Harris’s past tax policy proposals suggest she might pursue more aggressive changes.
Key questions include whether Harris will advocate for steeper tax increases with a benchmarking of $400,000 and above. Harris's approach to the expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and the federal debt's unsustainable trajectory will be of great interest to me and my team.
In her 2020 campaign and as a California senator, Harris proposed several tax changes. These included raising the top marginal income tax rate on the top 1 percent to 39.6 percent, implementing a 4 percent income-based premium on households making over $100,000 for Medicare for All, and creating a $3,000 refundable tax credit for low- and middle-income taxpayers.
Note: 50% of the population of the nation does not pay a dime of income tax.
She also suggested raising the corporate income tax rate to 35 percent, expanding the estate tax, and imposing a financial transaction tax on certain trades. Furthermore, Harris proposed a substantial pandemic relief package and a tax credit for renters earning under $100,000 who spend over 30 percent of their income on rent and utilities.
Comparing her past proposals to the Biden-Harris administration’s fiscal year 2025 budget, Harris’s tax policy ideas often align but differ in specifics. For instance, while both propose raising the top income tax rate to 39.6 percent, Harris's corporate tax rate proposal is significantly higher than the 28 percent suggested in the FY 2025 budget. Harris also supported a version of Medicare for All, financed by a tax on incomes above $100,000, contrasting with Biden's avoidance of such a proposal. Additionally, Harris’s financial transaction tax on Wall Street trades is absent from the FY 2025 budget, which instead focuses on other areas such as expanding the child tax credit and overhauling the international tax system.
Keys:
Benchmarking. At what dollar amount is one considered wealthy?
Think of this in terms of income and net worth.
Net worth is the difference between the values of your assets and liabilities.
The average American net worth is $1,063,700, as of 2022.
Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74.
Net worth, however, tends to drop for those 75 and older.
Overall, Harris's tax and trade policies suggest a more aggressive approach than Biden's, focusing on substantial reforms and redistribution efforts.
