The Kamala Harris tax plan focuses on raising corporate and high-earner taxes to fund tax cuts for low- and middle-income families, aiming to reduce costs for housing, childcare, and healthcare. Key proposals include increasing the corporate tax rate to 28%, raising capital gains taxes to 28% for those earning over $1 million, implementing a "billionaire minimum income tax", expanding the Child Tax Credit to $6,000 for newborns, and providing up to $25,000 in down payment assistance for first-generation homebuyers.
Harris's tax plan relies on higher taxes on businesses and high earners to raise new revenues as outlined in President Biden's FY 2025 budget with some revisions (to capital gains taxes, as noted), combined with several tax credits. All provisions are modeled as starting in calendar year 2025 unless otherwise noted.
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
Harris has expressed support for making child care and elder care more affordable and enacting paid family leave. Harris has also expressed support for student debt relief. On August 16, 2024, she announced the proposal of a $6,000 child tax credit, expanding her populist economic agenda.
Individual tax proposals
President Biden's proposal to increase the top individual ordinary income tax rate to 39.6% is projected to raise $245.9 billion over 10 years. The proposal to tax capital gain income for high earners at ordinary rates is projected to raise $288.5 billion over the same period.
Among its key features, the proposed tax plan: Reduces existing tax brackets from seven to three, eliminating the Head of Household Filing Status and broadening tax brackets. Reduces the top marginal income tax rate for ordinary income from 39.6 percent to 33 percent.
She was the second Black woman and first South Asian American U.S. senator. As a senator, Harris advocated for stricter gun control laws, the DREAM Act, federal legalization of cannabis, and reforms to healthcare and taxation.
Taxes. Harris opposed the Tax Cuts and Jobs Act of 2017 and has called for a repeal of the bill's tax cuts for wealthy Americans. In 2018, she proposed a tax cut for most working- and middle-class Americans.
Tim Walz is known as the Governor of Minnesota, recognized for progressive policies like universal free school meals, protecting reproductive rights, expanding voting rights, and clean energy initiatives, alongside his background as a former high school teacher, coach, and long-serving U.S. Congressman for Minnesota's First District. He's known for his work in education, veterans' affairs (serving 24 years in the Army National Guard), and championing family-friendly policies, often seen as a pragmatic Midwestern Democrat.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.
President Trump's Tax Cuts and Jobs Act is slated to be in effect from 2018 to 2025. Throughout the tax years within the TCJA period, taxpayers will likely see an increase in their tax cuts. However, by 2025 when the TCJA expires, all individual tax cuts expire too.
Donald Trump, previously the president of the United States from 2017 to 2021, campaigned in 2024 on the promise of an economic nationalist system characterized by protective tariffs, lower taxation, and reduced regulations, where income tax would be largely or completely replaced by tariffs on other countries to ...
A: Harris calls climate change an existential threat and says the United States needs to act urgently to address it.
During her term as attorney general, Harris's office oversaw major investigations and prosecutions targeting transnational criminal organizations for their involvement in violent crime, fraud schemes, drug trafficking, and smuggling.
As early as December 2021, Harris was identified as playing a pivotal role in the Biden administration owing to her tie-breaking vote in the evenly divided Senate as well as her being the presumed front-runner in 2024 if Biden did not seek reelection.
President-elect Donald Trump campaigned on lowering the US corporate income tax rate to 15 percent. He made the same request in 2017 when Republicans passed their tax cuts, but Congress only cut the federal rate to 21 percent—down from the worldwide high of 35 percent.
"Read my lips: no new taxes" is a phrase spoken by American presidential candidate George H. W. Bush at the 1988 Republican National Convention in New Orleans as he accepted the nomination on August 18.
High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2022, the bottom half of taxpayers earned 11.5 percent of total AGI and paid 3 percent of all federal individual income taxes. The top 1 percent earned 22.4 percent of total AGI and paid 40.4 percent of all federal income taxes.