As we approach the next presidential election, tax policy remains a hot topic. Both former President Donald Trump and Vice President Kamala Harris have outlined their economic plans, but there’s a fresh twist with Senator JD Vance’s bold new pledge to enhance the Child Tax Credit (CTC). This proposal could significantly impact millions of families across the country.
With the Tax Cuts and Jobs Act (TCJA) provisions set to expire after 2025, many of us are watching closely. These expiring benefits include reduced federal income tax brackets and a higher standard deduction. If Congress doesn’t act, more than 60% of taxpayers could face higher taxes in 2026.
Senator Vance’s pledge comes amid a backdrop of expected tax extensions and potential debates over federal deficits. While both parties may agree on extending certain tax cuts, the road ahead could be filled with negotiations.
Keep an eye on this space as we dive deeper into what these proposed changes mean for you and your finances.
Trump’s Plan to Extend Tax Cuts: What You Need to Know
Trump is pushing to keep the individual and business tax cuts that were part of the Tax Cuts and Jobs Act (TCJA). He made this clear in a campaign press release on Monday, promising substantial tax relief for families and small businesses.
In his speech in York, Pennsylvania, Trump briefly touched on his tax plans, aiming to counter the Democratic National Convention. He assured voters of significant tax cuts if he’s re-elected.
On the other hand, Kamala Harris hasn’t made any specific comments about extending the TCJA during her 2024 campaign. However, President Joe Biden’s top economic advisor, Lael Brainard, expressed support for extending some aspects of the tax cuts in May. Brainard emphasized that extending these cuts should not benefit those earning over $400,000, as a fairer tax system is needed.

Tax Proposals in the 2024 US Presidential Election: What’s at Stake?
In the 2024 US Presidential Election, both major candidates are focusing on ways to tackle the budget deficit through tax law changes. However, implementing these changes will require Congressional approval, which may be difficult depending on which party controls the House and Senate.
Vice President Harris has proposed raising the corporate tax rate to 28%, up from the current 21% established by the TCJA. According to the Committee for a Responsible Federal Budget, this change could help cut the deficit by $1 trillion over the next decade.
On the other hand, former President Trump is advocating for significant tariffs on imported goods. His plan includes a baseline 10% tariff and a 60% levy specifically on Chinese goods. The Tax Policy Center estimates that this could lower the average after-tax income of U.S. households by about $1,800 in 2025. Trump argues that these tariffs are a tax on foreign countries, not on American consumers.

As the US Presidential Election debate heats up, these proposals will be key topics.
Tax Cuts on Tips and Social Security: What’s on the Table for 2024?
Both presidential campaigns have proposed eliminating income tax on tips, with each side presenting their plans at events in Nevada, a key battleground state known for its service industry. Kamala Harris unveiled her proposal on August 10, following Donald Trump’s similar plan from earlier this summer.
While there’s some bipartisan backing in Congress, the idea hasn’t been without criticism. Experts are concerned about potential administrative challenges and misuse of the policy.
Final Thoughts
As the US Presidential Election 2024 approaches, the tax policies proposed by Donald Trump and Kamala Harris could profoundly impact your finances. From extending tax cuts to overhauling tariffs and altering the Child Tax Credit, these plans promise significant changes. While Trump’s focus is on preserving current tax cuts and imposing new tariffs, Harris aims to raise corporate taxes and eliminate income tax on tips. With potential tax hikes looming after 2025 and ongoing debates over fiscal policies, staying informed on these proposals is crucial. Keep following the developments to understand how they might affect your tax bill and financial future.
Frequently Asked Questions
Ques. 1. What are Donald Trump’s tax plans for 2024?
Ans. Donald Trump plans to extend the tax cuts from the Tax Cuts and Jobs Act (TCJA), including maintaining reduced individual and business tax rates. He has also proposed significant tariffs on imported goods, aiming to keep taxes lower for American families and small businesses. These plans were detailed in his campaign materials and speeches.
Ques. 2. What is Kamala Harris’s tax policy for 2024?
Ans. Kamala Harris has proposed raising the corporate tax rate to 28% from the current 21% set by the TCJA. She has also introduced a plan to eliminate income tax on tips. Harris’s tax proposals are designed to address the budget deficit and ensure that higher earners contribute a fair share.
Ques. 3. How will the Tax Cuts and Jobs Act changes affect taxes after 2025?
Ans. The TCJA provisions, including reduced federal income tax brackets and a higher standard deduction, are set to expire after 2025. If Congress does not act to extend these benefits, over 60% of taxpayers could see an increase in their taxes starting in 2026.
Ques. 4. What is Senator JD Vance’s proposal for the Child Tax Credit?
Ans. Senator JD Vance has proposed enhancing the Child Tax Credit (CTC), which could provide increased financial support to families across the country. This proposal aims to make the CTC more generous, impacting millions of families and potentially addressing concerns about child poverty.
Ques. 5. How might the 2024 presidential election affect your tax bill?
Ans. The 2024 presidential election could lead to significant changes in tax policy depending on which candidate wins. Trump’s plans focus on extending current tax cuts and imposing tariffs, while Harris’s proposals include raising corporate taxes and eliminating income tax on tips. These changes could affect your tax bill based on the policies enacted.
Ques. 6. What are the potential challenges with eliminating income tax on tips?
Ans. 6. Eliminating income tax on tips, as proposed by both presidential candidates, faces criticism from some policy experts. They worry about potential administrative hurdles, difficulties in implementation, and the risk of misuse of the policy, which could complicate tax enforcement and compliance.
Ques. 7. How will tariffs affect U.S. households under Trump’s plan?
Ans. 7. Trump’s plan includes a baseline 10% tariff and a 60% tariff on Chinese goods. The Tax Policy Center estimates that these tariffs could lower the average after-tax income of U.S. households by about $1,800 in 2025. Trump argues that these tariffs are meant to tax foreign countries rather than American consumers directly.
Ques. 8. What does Lael Brainard say about extending tax cuts?
Ans. Lael Brainard, President Joe Biden’s top economic advisor, has expressed support for extending some aspects of the TCJA tax cuts. However, she advocates for limiting these extensions to those earning below $400,000 to ensure a fairer tax system.
Ques. 9. How could raising the corporate tax rate impact the deficit?
Ans. Raising the corporate tax rate to 28%, as proposed by Kamala Harris, could help reduce the federal deficit. The Committee for a Responsible Federal Budget estimates that this change could cut the deficit by $1 trillion over the next decade, contributing to deficit reduction efforts.
Ques. 10. What are the main tax issues in the US Presidential Election 2024?
Ans. The key tax issues in the US Presidential Election 2024 include proposals for extending or changing the TCJA tax cuts, raising corporate taxes, eliminating income tax on tips, and implementing tariffs. These issues are central to the election debate and could have significant implications for taxpayers and the economy.
Also Read:
Enhanced Child Tax Credit: Senator JD Vance Proposes in Bold New Pledge
Social Security Spousal Benefits: 5 Simple Ways to Increase It
Capital Gains Tax Rates: What’s New in 2024 Compared to 2023?