top of page
Writer's pictureJosiah Caldwell

“Election 2024: Tax Plans and What They Mean for Your Finances”



Taxes on the Table: What the Presidential Candidates Are Pledging


With the national conventions wrapped up and campaign season in full swing, many voters are wondering about the tax proposals from the presidential candidates. Unfortunately, details are limited, and economists often disagree on the long-term effects of various tax policies. Below is a general overview of how the candidates intend to handle taxes, based on the promises and information currently available.


Unrealized Gains and Capital Gains Taxes

Kamala Harris has proposed a plan to tax unrealized capital gains on assets that haven’t been sold, but only for those with a net worth exceeding $100 million. This group would face a minimum 25% tax on their income and capital gains. She has also suggested raising the long-term capital gains tax rate for individuals earning more than $1 million, from 20% to 28%, with taxes on unrealized gains at death, subject to a $5 million exemption.


Expiring Provisions of the TCJA

Many key provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire in 2025. This includes lower marginal tax rates and the qualified business income (QBI) deduction for small businesses. Trump supports making these provisions permanent, while Harris endorses maintaining tax breaks for individuals earning less than $400,000 but proposes raising taxes for higher earners.


Corporate Taxes and Other Provisions

The TCJA lowered the corporate tax rate to 21%, but Trump has proposed reducing it further to 15% for companies manufacturing products in the U.S. Meanwhile, Harris supports raising the corporate tax rate to 28% and increasing the alternative minimum tax (AMT) for large corporations. She also backs raising the excise tax on stock buybacks from 1% to 4%.


While both candidates have plans to reform taxes, it’s important to remember that Congress ultimately decides on tax policy changes. For personalized advice on how these tax changes could affect your business, contact Verity CPAs at info@verity.cpa or call us at 808.546.5026.

0 comments

Comments


bottom of page