2024 Election: Harris Proposes Tax Hikes to Fund Agenda

In the lead-up to the 2024 election, Kamala Harris is endorsing trillions of dollars in new tax revenues to fund her policy plans aimed at tackling costs for housing, child care, and prescription drugs. Her campaign estimates her plans would cost around $1.7 trillion over a decade.

• Harris supports the White House budget proposal, which includes a corporate tax rate hike from 21% to 28% and ending the Trump tax cuts for upper earners next year.
• According to nonpartisan estimates, Harris is proposing to spend about $2 trillion and raise $5 trillion in tax revenues over a decade.
• Harris is seeking to position herself as fiscally disciplined, a shift from the traditional Republican stance on budget deficits.

Trump Claims Economic Growth Will Pay for His Policies

On the other hand, Donald Trump is calling for extending his 2017 tax cuts, eliminating payroll taxes on Social Security, and boosting the child tax credit to $5,000. His plans would cost about $5 trillion, according to estimates.

• When asked how he would pay for his plans, Trump said, "Growth. We're going to have tremendous growth. We're going to have tremendous growth."
• Trump's one major proposal to raise revenue for the government is through new taxes on imported goods – a 10% worldwide tariff and 60% tariff on Chinese imports.
• Experts are skeptical that economic growth alone can cover the cost of Trump's proposals, which could also lead to higher deficits.

Fiscal Responsibility and the 2024 Election Debate

The debate over fiscal responsibility and how to pay for policy proposals is shaping up to be a key issue in the 2024 election.

• Harris is attempting to flip the script on fiscal responsibility, building a case for Trump-skeptical moderate Republicans and center-right voters to support her candidacy.
• The Harris campaign has labeled Trump's agenda "an inflation and deficit bomb," while the Trump campaign has accused the Biden-Harris administration of "reckless spending."
• Whoever wins the election, Congress is headed for a major tax debate next year, with much of the 2017 Trump tax cuts set to expire at the end of 2025.

Impact on Economic Growth and Deficit Reduction

Experts have weighed in on the potential impacts of the candidates' proposals on economic growth and deficit reduction.

• Mark Zandi, chief economist at Moody's Analytics, said that Harris's plans could lead to around $3 trillion in deficit reduction over the 10-year budget horizon.
• Zandi also noted that Trump's 2017 tax cut "did lift growth in terms of corporate investments," but it "didn't come close to paying for itself."
• Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, cautioned that the Harris campaign hasn't earmarked all the $3 trillion for deficit reduction, as they also plan to address child care, long-term care, and paid leave.

Tariffs and Trade Policy Impact

Both candidates have proposed changes to tariffs and trade policies, which could impact economic growth and government revenue.

• Trump's proposal for new taxes on imported goods, including a 10% worldwide tariff and 60% tariff on Chinese imports, could raise between $2.5 trillion and $2.8 trillion in revenue, according to estimates.
• However, Trump's tariffs and mass deportation policies could also shrink growth, offsetting some of the potential revenue gains.
• Harris has not proposed significant changes to tariffs or trade policies, focusing instead on domestic tax policy changes.

Corporate Tax and Individual Tax Policies

The candidates have proposed contrasting changes to corporate and individual tax policies, which could have significant impacts on government revenue and economic growth.

• Harris supports increasing the corporate tax rate from 21% to 28%, rolling back the Trump tax cuts for upper earners, and introducing an array of taxes on wealthier Americans.
• Trump is calling for extending his 2017 tax cuts, eliminating payroll taxes on Social Security, nixing taxes on tips, and boosting the child tax credit to $5,000.
• The debate over which tax policies will best promote economic growth and reduce deficits is likely to intensify as the 2024 election approaches.

Tax Policy Debate and the 2024 Election

The contrasting tax policy proposals from Harris and Trump are shaping up to be a key battleground in the 2024 election, with both campaigns making their case to voters on fiscal responsibility and economic growth.

• Harris is positioning herself as a fiscally disciplined candidate, aiming to appeal to moderate Republicans and center-right voters who may be concerned about budget deficits.
• Trump is doubling down on his tax cut agenda, claiming that economic growth will pay for his proposals and dismissing concerns about increasing deficits.
• The outcome of the 2024 election could have significant implications for the direction of tax policy and the nation's fiscal outlook in the coming years.