Analyzing the Tax Plans of Kamala Harris and Donald Trump
Tax Lawyers Breakdown Harris vs Trump Tax Plan (FULL DETAILS) đź”—
00:00 Introduction
Tax lawyers Mark J. Kohler and Matt Soren provide an in-depth analysis of the tax plans proposed by Vice President Kamala Harris and former President Donald Trump. Their goal is to inform viewers about the potential economic impact on individuals and businesses, emphasizing the importance of understanding tax policies beyond political preferences.
02:30 Current Tax Landscape
The video highlights the impending expiration of the Tax Cuts and Jobs Act in 2025, which will increase individual tax rates and reduce deductions. Key changes include higher tax brackets, a decrease in the standard deduction, and the loss of certain tax benefits like the child tax credit.
10:00 Capital Gains Tax
Harris proposes increasing the long-term capital gains tax from 20% to 28%, alongside taxing unrealized gains for high-net-worth individuals. Trump, on the other hand, aims to maintain the current capital gains rate, promoting investment by keeping taxes lower.
15:00 Small Business Support
Harris suggests increasing startup cost deductions for new businesses, while Trump plans to extend existing benefits, such as the Qualified Business Income deduction and bonus depreciation, which would benefit current small business owners more significantly.
20:00 Child Tax Credit
Harris proposes raising the child tax credit to $6,000 for families, while Trump wants to maintain the current $2,000 credit established under the Tax Cuts and Jobs Act. This reflects differing priorities in supporting families.
25:00 Housing Initiatives
Harris aims to provide down payment assistance and tax credits to promote home ownership, whereas the video critiques this approach as potentially inflating housing prices. A focus on increasing housing supply rather than demand is suggested as a better solution.
30:00 Corporate Taxation
Harris seeks to raise corporate tax rates to 28%, while Trump prefers to reduce them further. The discussion emphasizes the implications of these changes on consumers and inflation.
35:00 Conclusion
The video concludes by urging viewers to consider how the proposed tax plans align with their personal and business goals. It emphasizes the importance of strategic tax planning, regardless of which candidate wins.
What are the main differences between Harris and Trump's tax plans?
Harris wants to increase taxes on capital gains and corporations while expanding benefits for families and new businesses. Trump aims to maintain or lower tax rates to stimulate investment and support existing small businesses.
How will the child tax credit change under each plan?
Harris proposes increasing the child tax credit to $6,000, while Trump plans to keep it at $2,000, reflecting their differing priorities on supporting families.
Why is the expiration of the Tax Cuts and Jobs Act significant?
The expiration will lead to higher tax rates and reduced deductions for individuals, affecting taxpayers' financial situations and the overall economy.