Facts on Tax: Democratic Plan v. Republican Plan

The information contained here is not what I have written, but rather a compilation of some things.  I will identify the sources.

A lot of it is based on the analysis done by University of Pennsylvania's Penn Wharton Budget Model.

It is notable that in 2025, some tax cuts enacted in 2017 for low to middle income folks will expire.  Whoever takes the White House will decide whether to try to extend those tax cuts or let them die. Kamala Harris promises to reduce taxes for lower and middle earner and increase taxes for the wealthy. Harris says she would leave the 2017 tax cuts in place for people earning up to $400,000 per year but raise rates for those who earn more. This plan would increase the federal deficit by 1.2 trillion over 10 years.

Trump has promised tax cuts for the wealthy and corporations. He hopes to further reduce the corporate tax rate by 6%. The Penn Wharton Budget Model predicts that Trump's plan would increase the federal deficit by 5.8 trillion dollars over 10 years.

Trump has proposed tariffs on all imported goods at a rate of 10 to 20 percent. Generally, tariffs create increased prices on the goods that are being imported.  Hypothetically, over the long run it will encourage industry to make those goods in the US. Harris criticizes this tariff plan, describing them as a "tax" on these goods. The Peterson Institute for International Economics projects that the Trump's tariff proposals would cost the typical American household over $2,600 per year.

Considering the effect of tariffs, middle-class household with $80,000 in income would lose $900 after taxes under Trump’s plan and gain $2,200 under Harris’. A household in the top 0.1 percent, with $14 million in income, would gain $377,000 under Trump and lose $167,000 under Harris.

Both candidates support removing taxes on tips. 

Middle income voters will fare significantly better under the Harris tax plan.