In the wake of President Joe Biden’s decision not to seek a second term and his endorsement of Vice President Kamala Harris, many speculate that she may become the Democratic Party’s nominee for the 2024 presidential election. While this potential scenario unfolds, Harris’s legislative record as a senator offers insights into her potential approach to tax policy in the future.
- LIFT Act: As a senator, Harris championed the Livable Incomes for Families Today (LIFT) Act. This proposal aimed to supplement existing tax credits for low-income workers, such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). The LIFT Act would have provided a new refundable tax credit, matching earnings dollar-for-dollar up to certain thresholds for both single individuals and married couples.
- The Tax Policy Center (TPC) estimated that the LIFT Act would predominantly benefit households in the lowest income brackets. However, unlike existing tax credits, this proposal would have provided significant benefits to childless workers, particularly young adults aged 18 to 24.
- Housing Assistance: In 2018, Harris introduced legislation focused on providing housing assistance to lower-income families. This plan centered on a refundable tax credit directly paid to renters, although specifics regarding the IRS administration of these rent credits were not detailed.
-
Tax Proposals: During her 2020 Democratic primary campaign, Harris put forth a range of tax proposals, including equating capital gains with ordinary income tax rates, implementing a financial transactions tax, strengthening the estate tax, and offering tax incentives to businesses operating in rural areas or developing renewable energy sources.
- Harris would likely draw inspiration from tax-related initiatives within the Biden-Harris administration, such as the American Rescue Plan Act and the Inflation Reduction Act, for future tax policies if she were to secure the presidential nomination.
In conclusion, Vice President Kamala Harris’s track record as a senator and a presidential contender underscores her potential approach to tax policy issues in the years ahead. As the possibility of her ascending to the highest office looms, her past legislative efforts provide valuable insights into how she may navigate and shape tax policies in the future.
