The presidential election is expected to be in 2024. The eligibility rules and possibility of a stimulus check as well as the payout plan are not known as of yet since they will be based on policy suggestions from the candidates. Here are a few of the stimulus check and IRS payment comparisons among the proposed tax plans of Vice President Kamala Harris and former President Donald Trump.
Tax proposals by Kamala Harris
As of this writing, Vice President Harris has issued no details on her tax positions for the 2024 campaign. It is, however, a given that she will advance or continue the tax proposals laid out by the Biden-Harris administration in the FY 2025 budget or otherwise cover additional revisions in tax policy.
Certain key elements of the tax proposals, among others, which might be carried over from the Biden-Harris administration are increasing the taxing of persons earning $400,000 or more to extend the Social Security payroll tax to higher incomes and giving the IRS the authority to negotiate drug prices lower, thereby reducing the cost of medication for seniors and persons with disabilities.
Throughout her career, Harris has taken a number of positions in support of expanding Social Security benefits by means that would ensure the long-term solvency of the program. She cosponsored the Social Security Expansion Act during her time in the Senate, expanding benefits so that the program is more generous.
Donald Trump tax proposals
Former President Trump has passed various amendments to part of the taxes that are likely to impact on the stimulus checks and IRS payments. The inclusions of this administration on major changes will include;
- Ensuring that taxes on Social Security Benefits are free for beneficiaries to enjoy a lion share of the income.
- Excluding all the tips from income tax for workers who work in the hospitality and restaurant industries
- Abolishing income tax on Social Security benefits
- Tax incentives and tax credits to increase home ownership
Trump’s economic policy advisors are fighting against removing the $10,000 cap on deducting state and local taxes and urge him to cut or do away with the cap entirely. Thirdly, the Project 2025 plan prepared by conservative groups for Trump has the following proposals related to tax:
- Two rates of individual income tax – 15% and 30%, with the 30% bracket starting at approximately $170,000
- 15% top capital gains tax rate with annual inflation indexing of capital gains
- Abolish the 3.8% NII on high-income earners
- Permit anyone to invest up to $15,000 per year in a universal savings account, with gains withdrawn tax-free at any time for any purpose
Trump also advocates for a universal baseline tariff of 10% or higher on all imports, while removing the tariffs already placed on China to at least 60% that could wipe out the benefit of his largest tax cuts, net negative to the US economy.
With Trump there doesn’t seem to be the prospect of a stimulus check in his plans but this however is more likely with Kamala Harris as president, even though it is not ideally states in her campaign proposals.
While both Harris and Trump want to give support to Americans through tax policies, there is a great chasm in the thoughts on how to do it. Harris has taken the approach of increasing Social Security benefits and cutting drug costs. Trump’s ideas also include the complete removal of taxes on Social Security benefits and tips. Thus, the result of the presidential election set for 2024 might mark a dramatic turn in the future of stimulus checks and IRS payments in the United States.
