Harris and Trump have competing tax plans. Here’s how your paycheck would change under both.
Presidential candidates commonly trot out new tax proposals as part of their campaign platforms, often pledging to help ease the financial burden on taxpayers. This year, the plans emerging from rivals Kamala Harris and Donald Trump could affect voters’ paychecks in very different ways.
Former President Donald Trump would seek to extend the tax cuts enacted through the Tax Cuts and Jobs Act, his signature 2017 legislation that reduced taxes for most Americans, although research has shown the top earners received the biggest benefits. He’s also proposing to eliminate taxes on tips and on Social Security income, while also lowering the corporate tax rate.
Vice President Harris has proposed introducing more generous tax benefits for families, as well as hiking the corporate tax rate to help offset spending from bigger tax credits.
forecast in June. That represents a 27% increase from its prior February forecast, due partly to new funding provided to Ukraine, Israel and other countries.
Deficits may seem abstract to many taxpayers, but at the simplest level they show the country is spending more than it’s taking in through tax revenue. That, in turn, increases the national debt to finance the deficit. Many economists warn that comes with a cost, such as higher interest payments to service that growing debt.
“Essentially we’re on this explosive path right now,” Smetters said.
At some point, soaring U.S. debt could sow doubt in capital markets about the federal government’s ability to either raise taxes or cut spending enough to avoid defaulting on that debt, he added.
“Neither candidate is being serious about addressing the big issue —the house is burning down and the candidates are arguing over the furniture,” Smetters said. “They are just making things worse and harming the economy.”
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Source: cbsnews.com