Vice President Kamala Harris and former President Donald Trump have very different tax proposals. Harris’s plan focuses on providing benefits to lower and lower-middle-income individuals, including expanding the child tax credit and housing tax credits. Trump, on the other hand, aims to cut taxes further, including making permanent the expiring provisions of his 2017 tax-cut package.
Harris plans to offset the revenue loss from tax cuts by raising the corporate income tax rate and increasing taxes for high earners. She also proposes enacting a billionaire minimum tax and quadrupling the tax on stock buybacks. Trump, known for his use of tariffs, intends to generate additional tax dollars by imposing tariffs on imports and goods from China.
Both candidates’ plans are likely to increase the federal deficit by trillions of dollars over the next decade. Experts are divided on which plan will lead to more economic growth, but agree that the growing public debt will impede investment and the accumulation of private productive capacity.
Overall, the tax proposals of Harris and Trump have significant differences in terms of who benefits and how the tax cuts will be paid for. The impact on the federal deficit and economic growth remains uncertain, but the growing public debt is seen as a concern that will affect the standard of living in the future.
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