Presidential Election: Still not sure who to vote for? Maybe We Can Help – Professional Tax Services

With just a few days left, we think it’s important to make a choice and get out and vote. What we can do is provide a quick summary of each candidate’s planned tax policies.

Overview
Trump will emphasize stimulating domestic economic growth by maintaining low taxes, while Harris intends to focus on increasing tax revenue from the wealthiest individuals.
Individual taxes
Trump plans to make the provisions of the Tax Cut and Job Acts permanent. He also wants to make tips exempt from taxation, and exclude overtime pay and Social Security benefits from taxation. Harris intends to increase the tax rate on the highest income earners from 37 to 39.6 percent. She wants to make tips exempt from taxation, but has not proposed policy concerning the continuation of the Tax Cut and Job Act (TCJA) and the standard deduction.
Individual tax credits
Trump plans to increase the child tax credit to $5,000 per child for all ages. Harris wants to expand child tax credits to $6,000 for children under one, $3,600 for children 2 to 5, and $3,000 for older children.
Estate taxes
Trump wants to make permanent the TCJA estate tax provisions. Harris intends to reduce the lifetime state tax exemption by nearly half.
Capital gains
Trump has no policy proposal. Harris plans to increase the capital gains rate on income above $1 million from 21 to 28 percent.
Housing affordability
Trump has no policy proposal. Harris wants to extend a $25,000 down payment on a loan for first-time home buyers.
Business taxes
Trump wants to make permanent the 20 percent deduction for qualified business income for individual business owners. Harris plans to provide a $50,000 deduction for startup expenses before they open their doors. This applies to very large companies.
Clean energy incentives
Trump has no policy proposal. Harris wants to expand credits and incentives for clean energy initiatives.
Corporate income tax
Trump intends to lower the corporate tax rate from 21 to 20 percent, or 15 percent for products produced in the US. Harris wants to increase the tax rate for large corporations (C-corps) from 21 to 28 percent. Most businesses are S-corps not C-corps.
Payroll tax
Trump wants to exempt tips and overtime pay from Social Security taxes. Harris wants to increase the Medicare tax to 5 percent on income above $400,000, which will affect many taxpayers.
We suggest you contact your tax professional to ensure you make tax plans that are appropriate for you. We provide unlimited tax planning advice to our clients.
Professional Tax Services is a locally owned provider serving over 3,500 local residents and businesses. For more information, call 661-259-1967 or visit www.scvprotaxservices.com.