As the political landscape shifts with Vice President Kamala Harris emerging as the presumptive Democratic nominee for President, the party gears up to establish a solid policy framework leading up to the upcoming convention. A pivotal aspect under scrutiny is how a potential President Harris would tackle tax and fiscal policy, a critical element that will shape her economic agenda.
Exploring her track record, Harris has demonstrated a proclivity for utilizing the tax code to advance her policy objectives during her tenure as a US Senator and her 2020 presidential campaign. While some expect deviations from Joe Biden’s economic policies, Harris has already reiterated a critical Biden tax principle: no tax hikes for families earning less than $400,000 annually.
Considering the big picture tax questions that lie ahead, let’s delve into the potential options and implications:
- With individual tax hikes for those earning under $400,000 out of the equation, could Harris opt to bolster revenue by increasing taxes elsewhere, mainly targeting the top 5% of earners, who currently constitute a significant share of income and tax contributions?
- Extension of the 2017 Tax Cuts and Jobs Act provisions expiring in 2025: Would Harris choose to let these provisions lapse, renew them selectively, or embark on a more comprehensive overhaul of the tax code?
- How would Harris approach tax credits for low-income individuals and initiatives that hinge on the tax code, like the LIFT Act or Child Tax Credit expansions?
- Would Harris follow Biden’s stance on tariffs, maintain the existing ones, or implement new tariffs to drive foreign policy and bolster domestic industries?
- Will Harris safeguard the IRS from budget cuts by supporting the restoration of funds and investments to ensure operational efficiency beyond the allocated timeframe?
Navigating these looming tax-related inquiries will be crucial in shaping Harris’s economic agenda and paving the way for meaningful policy reforms. With the clock ticking towards November 5, addressing these pivotal questions will be imperative in outlining a comprehensive tax strategy that resonates with the American populace.
