With President Joe Biden no longer in the running for the next election, all eyes are on Vice President Kamala Harris as the frontrunner for the Democratic nomination. Although Harris has not yet released a detailed economic agenda, experts believe that some of her tax policies may align with Biden’s proposals, focusing on increasing taxes for the wealthy and corporations.
As Harris moves forward in her campaign, it is likely that she will echo many of Biden’s priorities, especially when it comes to tax policy. Garrett Watson, a senior policy analyst, suggests that Harris is expected to be in alignment with Biden’s vision for the country’s economic future. However, it remains to be seen if Harris will bring her own unique perspective to the table, given the groundwork laid out by the Biden administration.
One of the major challenges facing Harris is the expiration of trillions of dollars in tax breaks after 2025. The Tax Cuts and Jobs Act, enacted by former President Donald Trump in 2017, made significant changes to federal income brackets, deductions, and credits. While Trump aims to fully extend these provisions, Biden has proposed renewing tax breaks only for those earning less than $400,000 per year.
Possible Tax Policies Under Harris
A pressing question is whether Harris will uphold Biden’s promise not to raise taxes for individuals earning less than $400,000 annually. Experts like Andrew Lautz believe that this decision will have far-reaching implications for future tax legislation and negotiations related to the Tax Cuts and Jobs Act. During her 2020 campaign, Harris put forward the LIFT the Middle Class Act, a proposal for refundable tax credits to support working families. Similarly, Democrats have focused on expanding the child tax credit, an issue that may also be important to Harris in her bid for the presidency.
Harris has already expressed support for tax policies that benefit families, such as the child tax credit expansion included in the American Rescue Plan. She highlighted the impact of these policies on reducing child poverty during a recent political event, underscoring the importance of supporting working families through the tax system. However, with the expiration of pandemic relief measures, childhood poverty rates have increased significantly, underscoring the need for ongoing tax policy reforms.
As Vice President Kamala Harris navigates the landscape of tax policy in her bid for the presidency, she faces critical decisions about how to address key tax issues. Whether she will build on the groundwork laid out by the Biden administration or introduce her own unique proposals remains to be seen. Nevertheless, experts agree that tax policy will continue to play a central role in shaping the economic future of the United States under a potential Harris administration.
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