Vice President Kamala Harris, the Democratic nominee for president, released a new economic platform ahead of the Democratic convention, and it includes several new tax proposals targeting housing and health care. The Harris campaign also confirmed she is following President Joe Biden’s lead in calling for a top corporate rate of 28%.
Tax policy continues to pick up traction on the campaign trail as both candidates pitch voters on their plans to leverage a unique opportunity to shape tax policy. Much of the Tax Cuts and Jobs Act (TCJA) is set to expire at the end of 2025, potentially triggering broader tax reform.
Harris’ new economic platform is just five pages long and light on details, with only a handful or new tax proposals, including:
- Endorsing the Stop Predatory Investing Act, which would prohibit taxpayers acquiring 50 or more single family homes from deducting any interest or depreciation on the homes (in additional to the previous proposal to curb tax benefits for certain corporate landlords that raise rents).
- Creating a $10,000 first-time homebuyer credit (as well as downpayment assistance)
- Creating an unspecified tax credit for building “starter” homes (in addition to the previously proposed Neighborhood Homes Tax Credit, which would provide a credit for certain rehab costs)
- Enhancing the low-income housing tax credit
- Reinstating the $3,600 child tax credit and increasing it to $6,000 in the first year of life
- Expanding the earned income tax credit
- Extending the enhanced Affordable Care Act premium tax credit
The proposals continue a trend toward populist tax policy as both Trump and Harris look to appeal to mainstream voters. Harris recently echoed Trump’s plan to exempt tip income from tax, and Trump has also discussed exempting Social Security payments from tax.
The Harris campaign also confirmed that she now supports the 28% corporate rate proposed by Biden, further evidence she is absorbing much of the Biden’s tax platform. Harris originally called for a 35% rate in the 2020 primary. Harris has repeated Biden’s pledge not to raise taxes on individuals with less than $400,000 in income.
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