Kamala Harris' New Tax Plan Explained

Kamala Harris’ New Tax Plan Explained

Kamala Harris has recently introduced her new tax plan to address economic challenges. These include a $25,000 down payment assistance for first-time homebuyers, a $6,000 tax credit for newborns, the restoration of the $3,600 child tax credit, the cancellation of medical debt for all Americans, and expanded subsidies for the Affordable Care Act. Additionally, Harris proposes increasing the corporate tax rate to 28% or 35%, which could have far-reaching effects on individuals and businesses, particularly through potential increases in the cost of goods and services.

Investment and Economic Impact

Two significant concerns arise from these proposed tax changes. First, a major issue is a potential negative impact on domestic investment due to higher corporate taxes. Increased taxes on corporations could decrease long-term investments within the U.S., pushing businesses to invest abroad. Second, eliminating the preferential tax rate on long-term capital gains may deter individuals from investing in companies, which could slow overall economic growth and innovation.

Estate and Financial Transaction Taxes

Additional concerns include an increase in the estate tax rate and the introduction of financial transaction taxes. Both of these measures could create added financial burdens for individuals and businesses, potentially discouraging wealth accumulation and financial planning.

Considerations for Voters

As the election approaches, it’s crucial to carefully evaluate the details of the tax proposals for both nominees, Kamala Harris and Donald Trump. As you decide who to vote for, go beyond surface-level issues and consider the broader economic implications of the proposed changes, particularly in terms of investment, taxation, and overall financial health.

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Missie Beach, CFP®, CDFA®
Senior Financial Advisor, Wiser Wealth Management

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