Tax & Accounting Issues Briefing on the tax policies of major presidential candidates
MINNEAPOLIS: Wolters Kluwer Tax & Accounting (TAA) recently released a comprehensive Tax Briefing on the proposed tax policies of the major presidential candidates, Vice President Kamala Harris and former President Donald Trump. The analysis aims to clearly distinguish their tax priorities and propose how their policies could potentially affect individual taxpayers, businesses, and the wider economy.
Key Candidate Policies:
- Individual Taxation: Harris has suggested a raise in the top income tax rate back to 39.6%, whereas Trump advocates for making the provisions of the Tax Cuts and Jobs Act of 2017 permanent.
- Capital Gains/Dividends: The top rate for capital gains could see an increase to 28% for high-income individuals under Harris's presidency, while Trump supports the current 20% rate on long term capital gains.
- Taxation of Tips: Both candidates are in general agreement over the abolition of tax on tips.
- Taxation of Social Security benefits: Trump would eliminate income tax on all benefits paid regardless of recipients’ income. Harris hasn’t taken a position on this.
- Child Tax Incentives: Harris intends to restore the maximum child tax credit to $3,600 and establish a $6,000 credit for infants under one year old. In contrast, Trump supports the permanent extension of the current $2,000 credit.
- Homebuyer Assistance: Harris has proposed expanding tax credits for housing construction as well as a $25,000 first-time home buyer subsidy and funds to promote new housing units and local housing solutions.
- Business Taxation: Corporate income tax could rise to 28% under a Harris administration, while Trump has called for a further reduction to 15%. Additionally, Harris has proposed a ten-fold increase in the tax deduction for small business start-up expenses from $5,000 to $50,000.
- Tariffs: Trump has proposed a broad-based tariff of 10% on imported goods and a 60% tariff on imported goods from China.
Expert Interviews
For a deeper dive into these tax policies and their implications, reporters are invited to contact Shannon Wherry, Associate Director, External Communications, to arrange interviews with the following Wolters Kluwer Tax & Accounting (TAA) experts:
- Mark Luscombe, CPA, attorney, and the principal federal tax analyst for Wolters Kluwer Tax & Accounting. Luscombe, who chairs the Important Developments Subcommittee of the Partnership Committee of the American Bar Association Tax Section, has extensive experience in taxation. His understanding of tax law developments offers invaluable insights into how these proposed policies may impact taxpayers and the wider economy.
- Mark Friedlich, ESQ., CPA, Vice President, Government Affairs. Friedlich’s profound tax expertise and understanding of government tax policies make him a critical voice in breaking down intricate tax matters. He is a member of the IRS Advisory Council and the U.S. Senate Finance Committee’s Chief Tax Counsel’s Advisory Board. Additionally, he serves as an advisor to 12 state taxing authorities and the HMRC in the UK.
About Wolters Kluwer
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Fonte: Business Wire