The $2.3T Gap Between Trump’s and Harris’s Tax Plans | WSJ

Summary

The video script contrasts the tax policies of Donald Trump and Kamala Harris, illustrating their divergent approaches. Trump advocates for substantial tax cuts, financed by tariffs on imports, particularly targeting China. He proposes a reduced corporate tax rate for US-based manufacturers and the elimination of Social Security income taxes. Conversely, Harris supports tax cuts for households under $400,000 and significant tax increases for corporations and the wealthy. Her plan includes an enhanced Child Tax Credit and a first-time homebuyer credit. Both candidates' plans could reshape the American tax landscape, with implications for federal revenue and household finances.

Takeaways

• 📉 Donald Trump's tax policy focuses on significant tax cuts for workers and businesses, proposing over $2 trillion more in cuts than Kamala Harris.
• 🔼 Kamala Harris advocates for tax cuts for households under $400,000 and increased taxes on corporations and the wealthy, with a plan costing about $4 trillion over 10 years.
• ⏫ Trump suggests a reduced corporate tax rate of 15% for companies manufacturing in the US, potentially reducing federal revenue by $200 billion over a decade.
• 🚫 Trump's plan includes the elimination of income tax on Social Security benefits, which could cost up to $1.8 trillion in revenue over ten years.
• 🏡 Harris proposes a $25,000 tax credit for first-time homebuyers, a substantial increase from the $10,000 credit discussed by President Biden.
• 🌐 Trump's strategy to fund tax cuts involves imposing tariffs, particularly on imported goods from China, which could lead to higher prices for consumers.
• 💼 Harris's tax plan aligns with Biden's budget, aiming to raise nearly $5 trillion, partly by increasing the corporate tax rate to 28%.
• 💵 Harris's proposal includes a new minimum income tax on individuals with a net worth over $100 million, aiming to bring in about $1.8 trillion in revenue.
• 🌿 Trump expresses intentions to repeal Clean Energy Credits and opposes the electric vehicle tax credit, in line with Republican stances.
• 🏛 The success of either tax plan hinges on the controlling party in the House and Senate, with potential for a divided government to alter proposed tax reforms.

Q & A

What are the key differences between Donald Trump's and Kamala Harris's tax policies?

Donald Trump's tax policies focus on providing significant tax cuts and raising tariffs on imported goods, while Kamala Harris's policies aim to cut taxes for middle and lower-income households and increase taxes on corporations and high-income individuals.

How much more in tax cuts has Trump proposed compared to Harris?

Trump has proposed roughly $2 trillion more in tax cuts than Harris.

What is the estimated cost of extending the tax cuts past 2025 as proposed by Trump?

Extending the tax cuts past 2025 could cost the federal government more than $4 trillion over a decade.

What is the proposed corporate tax rate by Trump for companies that make products in the US, and what is its estimated impact on federal revenue?

Trump proposed a lower corporate tax rate of 15% for companies that make products in the US, estimated to reduce federal revenue by $200 billion over the next decade.

What is the potential cost to the federal government if Trump's plan to eliminate income tax on Social Security benefits is implemented?

Ending income taxes on Social Security benefits could cost the federal government as much as $1.8 trillion in revenue over a decade.

How does Kamala Harris's tax plan differ from President Joe Biden's?

While Harris has largely adopted Biden's plan, she goes further by increasing the Child Tax Credit for young children and proposes a more substantial first-time homebuyer tax credit.

What is the estimated cost of Kamala Harris's Child Tax Credit plan over the next decade?

Harris's Child Tax Credit plan would cost $1.2 trillion over the next decade.

What is the proposed amount of the first-time homebuyer tax credit by Kamala Harris, and how does it compare to Biden's proposal?

Harris proposes a $25,000 down payment assistance for first-time homebuyers, compared to the $10,000 credit discussed by President Biden.

How does Trump's plan to tax imported goods, particularly from China, aim to raise revenue?

Trump's plan focuses on imposing tariffs, such as a 10-20% tariff on foreign countries and a 60% tariff on Chinese goods, to raise revenue, estimated to potentially reach around $3 trillion over a decade.

What is the estimated annual cost to a typical household due to Trump's proposed tariffs?

Economists estimate that Trump's tariffs would raise the price of goods, costing a typical household about $1,700 a year.

How does Kamala Harris's tax plan propose to raise revenue, and what is the estimated revenue from this approach?

Harris's tax plan, in line with Biden's budget proposal, aims to raise nearly $5 trillion in revenue, with a significant part coming from raising the corporate tax rate to 28% and increasing taxes on households making over $400,000.