Tax battle heats up: Harris's plan targets rich while promising relief for workers
Next years tax cuts expiration puts money matters in spotlight for upcoming election. Harris offers no-tax-increase promise for most Americans while planning to get more from top earners and big firms
In next years presidential race tax policy takes center-stage due to the soon-to-expire tax legislation. While Donald Trump aims to keep his 2017 cuts Kamala Harris presents a different money-management vision
The vice-presidents tax-reform ideas focus on helping average Americans: households making under $400‚000 yearly wont see any tax increases (which is good news for most US citizens). Her plan includes some well thought-out changes to help working families and boost the economy
Under my economic plan‚ more than 100m Americans will get a tax cut
For families with kids Harris wants to make some big-time changes:
- Raising Child Tax Credit to $3‚600 per kid
- One-time $6‚000 credit for new parents
- No taxes on service workers tips
- Small-business startup costs write-off up to $50‚000
To pay for these programs Harris plans to get money from the wealthy folk and big companies. The corporate tax rate would go up to 28% from todays 21%; while people earning over $1m yearly would pay more on their investment profits. Sheʼs also thinking about a special 25% tax for super-rich people (those worth over $100m)
Elliot Hentov from State Street Global Advisors points out an important detail: “The main thing to remember is that tax policy will only be significantly affected if the President also controls both houses of Congress; the odds for the Democrats are very unlikely“
The Tax Policy Center suggests low-income families could get about $2‚750 extra from the expanded credits - but some experts worry that higher corporate taxes might slow down business growth. Still its worth noting that US tax income compared to GDP sits at pretty-low levels these days
