The winner of the November elections will have a unique opportunity to reshape tax policy. Built-in changes to the tax code at the end of 2025 are expected to prompt broader tax reform (see our article for what is scheduled to change).
Republicans and Democrats have vastly different visions for how to remake the tax code. This article will provide a side-by-side comparison of the tax platforms of the two candidates for president, but it is important to consider these proposals in context.
What does it mean?
Party campaign platforms have one purpose: to get party candidates elected. Campaigns typically focus on broad goals and leave out many difficult details. Candidates generally are not overly concerned with any practical or political hurdles to enactment. The proposals don’t have to be administrable or consistent as long as they appeal to voters.
No one should expect a tax platform to be enacted exactly as promised on the campaign trail. The Tax Cuts and Jobs Act differed significantly from Trump’s 2016 tax platform, as did the Inflation Reduction Act from Biden’s 2020 platform. Control of Congress will also be very important to the outcome.
What is known?
Comparing the tax platforms of the two presidential candidates is particularly difficult this year. Former President Donald Trump has a long history of evolving tax positions from three straight campaigns and four years in office. It can be difficult to identify which positions represent his current priorities, as he often speaks off the cuff and sometimes releases new proposals with little or no warning.
Democratic nominee and current Vice President Kamala Harris on the other hand has a much thinner tax record. She was not heavily involved in tax policy in her short tenure in the Senate, and did not have an expansive tax platform during her campaign in the 2020 Democratic primary. She is largely expected to absorb much of President Joe Biden’s tax platform, especially as there is widespread Democratic agreement on many core aspects. She has affirmatively confirmed support for several Biden positions, though she has also broken with him in a couple key areas. Her prior campaign platform may offer other hints of differences, including the LIFT Act, and she recently released a new economic platform with several tax proposals.
The description of Trump’s platform is based on proposals across his campaigns and through his presidency, with an emphasis on more recent statements. Where possible, context is provided on the provenance of a proposal, with notes pointing out places where his position has evolved, or the current position is unclear.
The description of the Harris platform includes the proposals in her recent economic plan and statements she has made since becoming the nominee. It is also partially based on Biden’s platform, much of which has been laid out in detail during “Build Back Better” negotiations and in recent budget proposals. It also includes priorities from her time in the Senate and prior campaign proposals. Where possible, there are notes providing the context for the proposals.
The tables are not exhaustive and do not cover every policy position or all aspects of either candidate’s legislative record. They are meant to identify some of the most significant tax proposals and policy differences as of Sept. 17.
Related election resources
- Corporate rate
- Business tax cuts
- Business tax increases
- Individual tax cuts
- Individual tax increases
- Capital gains
- Estate tax
- International
Trump
- Trump began the current campaign calling to retain the 21% rate, but later told the Business Roundtable he supported a 20% rate
- Most recently, he proposed a 15% rate in a Bloomberg interview, and then offered more expansive comments in a later speech that indicated the 15% rate would be for domestic activity
Harris
- The Harris campaign recently confirmed that she supports Biden’s 28% rate proposal, although she originally endorsed a 35% rate in the 2020 primary
Trump
- Trump has in the past supported making 100% bonus depreciation permanent
- Trump supports making the Section 199A pass-through deduction permanent
- Past campaigns and statements while president have mentioned unspecified payroll tax cuts
Harris
- The recently released Harris economic plan included tax cuts that would enhance the low-income housing tax credit, create a tax credit for building start homes, and allow a credit for certain rehab costs
Trump
Trump and many Republicans have proposed repealing the enhanced energy tax incentives from the IRA, particular those for electric vehicles, and Trump’s 2021 budget proposal called for removing energy incentives
Harris
- Harris has endorsed the recent Biden proposal to tax benefits for corporate landlords that raise rents
- Harris’ new economic plan would prohibit tax benefits for taxpayers buying more than 50 single-family homes
- While running in 2020, Harris supported a surtax for big banks and financial transactions tax, though the financial transactions tax was explicitly earmarked for a “Medicare-for-all” plan she has so far not resurrected.
- Biden’s recent budget proposals have included:
- Stock buyback tax increase to 4%
- CAMT rate increase to 21%
- Barring deductions for all pay exceeding $1 million for all employees
- Limiting Section 1031 like-kind exchanges to $500,000 in gain
- Tightening digital asset rules
- Repealing oil and gas tax incentives
- Curbing specific types of corporate transactions
- Increasing IRS funding
Trump
- Trump proposed exempting tip income from tax on the campaign trail and the proposal has been widely embraced by Republicans
- Trump mentioned exempting Social Security payments from tax in a campaign stop, but has not followed up with many details
- Trump has long supported extending the TCJA tax cuts
- Republican platform document suggests “supporting home ownership through tax incentives”
- Trump has in the past discussed a 10% “middle class tax cut” and reducing the 22% tax bracket to 15%
Harris
- Harris has endorsed Trump’s proposal to exempt tip income from tax
- Harris’ pledge not to raise taxes on those earning less than $400,000 presumably implies extending TCJA cuts below this threshold
- While in the Senate, Harris proposed a refundable savers credit and increase child and dependent care tax credit in the LIFT Act, and also supported a credit for those spending more than 30% on rent
- Harris’ new economic platform includes extending the enhanced child tax credit, EITC, and ACA premium credit, and would create a first-time homebuyer credit and $6,000 child tax credit in the first year of life
Trump
- Trump has discussed ending the enhanced ACA premium tax credit
Harris
- The LIFT Act from Harris in 2020 proposed rescinding TCJA tax cuts for over $100,000 in income, which would increase the top individual rate to 39.6%, though she has now reiterated Biden’s pledge not to increase taxes on those earning less than $400,000
- Biden’s budget would limit IRA contributions for high-income taxpayers
- Biden’s budget proposes expanding the 3.8% NII tax and raising the top NII and Medicare rate to 5%
Trump
- Trump discussed indexing capital gains to inflation before rejecting during his first term
- Trump has in the past criticized the tax treatment of carried interest and the TCJA increased the holding period for long-term gains treatment
Harris
- Harris has proposed raising the top rate on capital gains to 28%, which is consistent with the House version of Build Back Better, but a break from Biden’s proposal to tax gains as ordinary income at top rate of 39.6%
- Harris has endorsed Biden’s 25% 'billionaire' minimum tax on unrealized gains, though this remains controversial among Democrats.
- Biden’s budget proposes taxing carried interest as ordinary income
Trump
- Trump would make TCJA estate tax provisions permanent
Harris
- Biden’s budget would repeal the step-up in basis of inherited assets and require tax at death
Trump
- Trump and congressional Republicans have been deeply critical of the Pillar 2 agreement and have threatened reciprocal tariffs and other taxes on countries that impose certain taxes on U.S. income or U.S. multinationals
- Trump has pledged to use tariffs widely as a general policy tool, including a 10% tariff on all imported goods and 60% rate against China, and has even discussed using tariffs to partially replace income taxes, though he has not followed up on this statement
Harris
- The Biden administration has proposed a sweeping package of international tax changes that would raise an estimated $632 billion in revenue by aligning U.S. rules more closely with the Pillar 2 global minimum tax
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