The presidential election of the United States is around the corner. Therefore, the main candidates who are running for the presidency are Vice President Kamla Harris and the former president of the United States, Donald Trump.
Both candidates are, therefore, bringing policies that they are claiming to bring into action once they come to the office. From healthcare to tax policies, both candidates are stating different plans that will help different segments of the US population.
In this blog, we will discuss the tax policies that are there, how the Democrat candidate Kamla Harris is proposing tax changes, and how that might have an impact on the citizens of the United States.
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Tax Proposals Related to Businesses
Certain areas might impact heavily on the corporate America. The Harris administration’s sole concern is to bring down the inequality gap, and for that, it’s planning to raise the corporate tax from 21% to 28%.
Further, the administration is claiming to revoke the reduced tax rate which was there earlier for the companies which are making money from the foreign investment vehicles that will also be taxed.
On the other hand, the Harris administration is aiming to bring real value to the main street of the US. The Vice President claims that there will be a new tax break for small businesses in the United States up to $50,000. Now, to deal with all these changes one can hire the best tax attorney in California who can help a small business to get the right deductions or credits if these changes applied.
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Tax Changes in Capital Gains and Estate Tax Planning
Under the capital gains tax changes, there is a positive and negative reaction from different parts of the country as the capital gains tax has been stated will be increased upto 28%. There is a nuance in the capital gains tax as the new tax rate is only applied to those who are making $1 million in profits in income each year, and below those, the same tax rate will be followed.
However, there is a relaxation for first-time home buyers as a tax credit of $25,000 will be provided to them. It is made with the plan of making home buying an affordable activity like in the mid-90s time.
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Areas Where Tax Credit Provisioning Will be Done
Now, there are certain areas, such as the child tax for all parents, where the family will get a tax credit of $6,000. Now, the tax credit aspect is there to bridge the wealth gap in the country. Therefore, the administration is bringing credits to the employees under the American Rescue Plan Act (ARPA). There will also be deductions on the sunshine industries like renewables and AI which is expected to bring more growth to the economy.
Now, a person who is running a business can hire an attorney for IRS issues so that they can deal with these changes and can easily find ways to limit themselves if the tax percentage goes higher.
These are some of the areas that the presidential candidate Kamla Harris has touched when it comes to the election of 2024.
