Yahoo Finance Trump Wants To Eliminate Income Taxes: What Will Happen to Your Income Taxes If Kamala Harris is Elected?
One of the big plans Trump has talked about, albeit without providing details, is eliminating income taxes. That has many voters asking where Harris might stand on the issue. Nothing in Harris’ past or recent comments suggests she intends to eliminate income taxes. However, she might champion lower taxes on middle-class voters and higher taxes on the wealthy if she’s elected.
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Experts told MarketWatch, “The best guess is that Harris’ views on taxes closely resemble those of President Joe Biden, with a big-picture stance that wealthy people and businesses need to pay more.”
Here’s what may happen to your taxes if Harris is elected in November.
Tax Credits Could Replace the 2017 Tax Cuts and Jobs Act
One thing voters are watching closely is the fate of the 2017 Tax Cuts and Jobs Act, which reduced the top individual income tax bracket, reduced tax rates and replaced the personal exemption with a larger standard deduction. Many of the changes to the individual section of the tax code are set to expire in 2025, meaning that lots of taxpayers could face higher taxes if the new administration doesn’t extend the cuts.
As a senator, and while she was running for president in 2019, Harris proposed the LIFT the Middle Class Act, a bill that would replace the TCJA with tax credits for lower- and middle-income workers. The plan would provide eligible individuals with tax credits of up to $3,000 for individual filers earning under $50,000 and up to $6,000 for married joint filers earning under $100,000. The credit would begin phasing out for individual filers earning over $30,000 and single parents and joint filers earning over $80,000 and $60,000, respectively.
The credit would not affect other credits, such as the child tax credit, eligible taxpayers receive.
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Possible Expansion of the Child Tax Credit
The Biden administration’s fiscal-year 2025 budget “focuses on expanding the child tax credit and making it fully refundable on a permanent basis,” according to the Tax Foundation. If Harris wins and keeps that item in the budget, families could continue reducing their tax liabilities by the full $2,000 credit. Otherwise, the refundable amount will drop to $1,600.
Higher Taxes on Wealthier Americans
According to Politico, the Harris campaign has said she will not raise taxes on anyone making less than $400,000. While that is in line with President Biden’s pledge, it differs somewhat from her previous record.
Specifically, according to the Tax Foundation, “Harris supported a version of Medicare for All, financed by a proposed 4% tax on incomes above $100,000.”
Harris on the Middle Class
While Harris may not have been clear yet on her economic plans if she becomes president, she is making it clear she wants to help the middle class. That’s helping to heat up the race — since Trump has also been targeting middle-class voters in his campaign speeches.
As for Harris, while at a rally last week in Wisconsin, she said, “Building up the middle class will be a defining goal of my presidency. Because here’s the thing we all here (in) Wisconsin know: When our middle class is strong, America is strong.”
GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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