Biden-Harris Tax Plan Comparison
As the 2024 US presidential election quickly approaches, tax policy will undoubtedly be a key issue for voters to consider. Let us break down for you what we know thus far regarding the tax policy proposals of presidential nominees Kamala Harris (D) and Donald Trump (R), as well as significant provisions from the previous administrations 2017 tax overhaul which are set to expire in 2026.
Expiring 2017 Tax Provisions
The following is a summary of significant provisions from the previous administrations 2017 tax overhaul which are set to expire in 2026.
Individual Income Tax, Credits and Deductions
Individual marginal tax rates will return to pre-2017 levels, with the maximum rate increasing from 37% to 39.6%.
Individual standard deduction amounts will be lower by almost half.
Maximum child tax credit will drop from $2,000 per child to $1,000.
Phaseout threshold for child tax credit will decrease to $75,000 for individuals and $110,000 for married couples.
Business Tax
Bonus depreciation continues to decrease by 20% annually and completely phases out after 2026.
Pass-through businesses will no longer be able to deduct up to 20% of qualified income.
State and Local Tax
The current $10,000 cap on state and local tax deductions will no longer apply.
Estate and Gift Taxes
Estate and gift tax exemption will decrease to pre-2017 levels (approx. $5 million), down from the current exemption amount of $13.6 million in 2024.
Summary of Significant Harris and Trump Tax Policy Proposals
A table displaying a side-by-side comparison of significant tax policy proposals from Harris and Trump.
What is not included in the table as it is unique to Trump’s tax plan is a summary of provisions related to tariffs and trade. By now, Trump is well known for his ideology around the need for strict sanctions on US imports while the Harris campaign has been essentially silent on this topic (although the Biden-Harris administration has imposed a 100% levy on imported electric vehicles). Under the Trump tax plan, a baseline tariff of 10%-20% would be imposed on all US imports while a much higher 60% tariff would be imposed on all US imports from China specifically. Furthermore, Trump has even stated he has considered replacing personal income taxes with increased tariffs.
In short, the 2024 election offers a stark contrast in tax policy. Kamala Harris is likely to propose reforms that raise taxes on the wealthy and expand credits for lower- and middle-income Americans, while Donald Trump is aiming to extend the tax cuts from his first term. And with major provisions of the 2017 tax overhaul set to expire, what happens in the next presidential term could have a big impact on American taxpayers. Stay tuned!
