Think about getting an email telling you that there’s a chance your taxes will go up a lot. Not a nice thing to happen, is it? In the event that the candidate wins the next election, this could happen. What might Trump and Harris‘s tax ideas mean for your income, stocks, and total finances? In this story, the main idea is based on this. Find out how these changes might affect your future and pay, and think about how you can get ready for them.
Why Taxes Are Important in Elections
You might know that taxes put a big impact on politics, but you might not know how much they can change your financial conditions. You might lose or gain money because of the tax plans of both parties. This could happen with the help of income tax, business tax, or even Social Security tax. It’s interesting that Trump and Harris have such different ideas about taxes. Let’s talk about what you might get out of their plans.
Trump’s Tax Plan: Keeping the 2017 Tax Cuts
First, let’s talk about Trump’s tax plan when he was president. The tax cuts put in place by the Tax Cuts and Jobs Act (TCJA) in 2017 are what he wants to keep. The standard deduction went up, income taxes went down, and families got a bigger child tax credit because of these tax cuts. But these perks will end in 2025, which could mean that taxes go up. Trump wants to make these tax cuts last longer and give families and small businesses even more help.
The Cost of Keeping Tax Cuts
But it might cost a lot to keep these tax cuts. A lot of people think it will add about $5 trillion to the country’s debt in the next ten years. It’s a lot of money, and it might hurt the business in the long run.
Tariffs and Trade: Extra Costs or Extra Money?
Trump also wants to bring back tariffs, which are taxes on things that come into the country. He wants to put a 10% tax on all goods from other countries and a 60% tax on goods from China. Trump says that these taxes will bring in more money for the government, but some experts think that people will have to pay more for things.
Experts say that these taxes could make the average American family’s income drop by about $1,800 in 2025. Trump also wants to split tax rates into two groups, with 15% and 30% as the main rates. He also wants to lower the company tax rate to 15%. It might be easier to do your taxes this way, but the government might get less money to run its programs.
Trump’s plans about Social Security
To top it all off, Trump wants to get rid of taxes on Social Security income. This might be useful for older people who count on Social Security to support them in old age. But some people are worried about how this change might impact Social Security as a whole and the government’s income.
Harris’s Plan Going in a Different Direction
Let us now look at Kamala Harris’s tax plan as vice president. When it comes to the 2017 tax cuts, Harris has a different point of view. She doesn’t want to keep these tax cuts for people making more than $400,000 a year like Trump does. Instead, she wants to raise the tax rate on businesses from 21% to 28%. This could bring in $1,000,000,000,000,000 over 10 years.
Giving the Middle Class a Hand
Harris’s idea is meant to help Americans in the middle class. One important idea is to increase the child tax credit. If families have baby children, this could save them up to $6,000 in taxes. This could help parents a lot because it takes a lot to raise a child.
The Earned Income Tax Credit (EITC) for low- and moderate-income workers should also be raised by Harris. As part of her plan, the EITC would be brought back in a more generous form, like it was in 2021. People who don’t have kids usually get less from the EITC, so this could help them a lot.
Kamala Harris About Health Insurance Costs
Health insurance is another big part of Harris’s tax plan. She wants to keep the incentives from the Affordable Care Act in place so that more people can afford health insurance. To keep food costs from going up too much, she also wants to stop unfair price increases and stop big food companies from buying up smaller ones.
If tips are taxed, What might change?
Trump and Harris have both talked about getting rid of the tax on tips. People who work in restaurants or other places where tips are important might notice this a lot. Not everyone is sure how this change will work or if it will cause problems.
Harris’s Ideas for Affordable Housing
Harris also wants to make it easier for people to buy homes. She wants to offer up to $25,000 in down payment assistance to first-time buyers and give builders tax breaks to make starting homes. She also wants to give more tax breaks to companies that build cheap rented housing. These tips are meant to make it easier to buy a house, especially since prices keep going up.
What’s at Stake in the Big Picture?
Trump and Harris clearly have very different tax ideas. Trump’s plan is mostly about saving and increasing the tax cuts he made while he was president. The rich and big businesses will have to pay more in taxes so that programs that help the middle class can be paid for.
What does this mean for you?
What these plans mean for you depends on what’s going on. Harris’s plan for a bigger child tax credit might help middle-class families with young children. But if you own a small business or got a tax break in 2017, Trump’s plan to keep those cuts in place might be better for you.
Think about the Trade-Offs
There are good and bad things about both ideas. Trump’s plan might make people borrow more money, which could hurt the business in the long run. Businesses might have to pay more because of Harris’s plan, which could hurt jobs and income. Not only should you think about how these plans might affect you, but also how they might affect the business as a whole.
Stay Informed and Choose Wisely
Know what’s going on and think about what’s most important to you. If you want to find the best option for your morals and financial goals, don’t just look at taxes. Think about the bigger problems as well. Don’t forget that your vote matters—make it count!
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