As Vice President Kamala Harris vies for the presidency, her proposed tax and spending measures have garnered significant attention. While her past positions as a senator, vice president, and presidential candidate outlined elaborate policy objectives encompassing left-wing ideologies like raised taxation for the affluent and novel spending programs, her current stance as the Democratic nominee remains relatively ambiguous. Despite the absence of detailed economic policy proposals on her campaign website, her team has hinted at certain tax and spending plans, many of which align with President Joe Biden’s budget initiatives. Here’s a breakdown of what we know so far:
Tax Hikes:
- Corporate Tax Hikes: Harris supports increasing the corporate tax rate to 28%, alongside a rise in the corporate minimum tax and taxes on foreign corporate earnings. These changes are estimated to generate $2.1 trillion over a decade.
- Top Income Tax Rate Hike: Proposes restoring the top marginal income tax rate to 39.6%, expected to raise $246 billion over 10 years.
- New Tax on Unrealized Capital Gains: Supports the introduction of a tax on unrealized capital gains for wealthy individuals, estimated to raise about $500 billion.
- Capital Gains Rate Hike for Wealthy: Plans to increase the capital gains tax rate for high earners to the same level as labor income, projected to generate about $400 billion.
- Limit Deductions for High-Earning Employees: Proposes extending limitations on corporate compensation deductions, expected to raise $272 billion.
Maintain Existing Policies:
- Expiry of Trump Tax Cuts: All individual provisions of the 2017 Tax Cuts and Jobs Act will end next year, potentially leading to a $3.3 trillion cost over a decade.
Tax Cuts:
- Tips Tax Exemption and Minimum Wage Increase: To eliminate taxes on tips and raise the federal minimum wage, albeit undergoing policy clarification.
- Expanded Child Tax Credit: Seeks to reintroduce the child tax credit amendments from the American Rescue Plan, which would increase the deficit by about $1.66 trillion.
- Earned Income Tax Credit Expansion: A call to expand the earned income tax credit, costing $126 billion over the next decade.
- Obamacare Subsidy Extensions: Proposals to extend current healthcare subsidies for Obamacare enrollees, amounting to $126 billion over the coming years.
Spending Plans:
- Down Payment Assistance for Homebuyers: Advocates for down payment support to first-time homeowners, fostering affordability and accessibility in the housing market.
- Housing Tax Credits: Recognizing the importance of affordable housing, Harris suggests expanding low-income housing tax credits and introducing incentives for developers.
- Caps on Drug Prices: Backs provisions that curb prescription drug prices, intending to save $250 billion over a decade.
As the campaign progresses, additional policy blueprints may emerge, shaping the economic landscape and informing voter decision-making. Stay tuned for updates and detailed insights into Vice President Kamala Harris’s fiscal vision as she progresses on the presidential trajectory.
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