Corporate Tax Rate

President Trump reduced the corporate tax rate from 35% to 21%, marking a significant shift aimed at boosting corporate investment in the U.S. He has since proposed cutting it further to 15% for companies that manufacture their products domestically. In contrast, Kamala Harris supports raising the corporate tax rate to 28%. The Tax Foundation projected that this could lead to job losses, reduced economic growth, and lower wages for low-income Americans.

Tax on Tips, Social Security, and Overtime

President Trump proposed eliminating taxes on tips for restaurant and hospitality workers, along with eliminating taxes on Social Security and overtime pay. He also advocates for extending the Tax Cuts and Jobs Act (TCJA), expanding the Child Tax Credit, and restoring the State and Local Tax (SALT) deduction. Harris came out in support of eliminating taxes on tips, however, after pushback her campaign has been largely silent on the issue. Harris opposed the TCJA when she was a U.S. Senator, including its doubling of the Child Tax Credit. Her campaign has not clearly stated its position on eliminating taxes on overtime. Additionally, Harris has not came out in support of eliminating taxes on Social Security payments, and supporting inflation adjustments that would remove social security benefits from being taxed. 

Capital Gains

Trump maintained the long-term capital gains tax rate at 20%. Harris has expressed support for increasing this rate to 28%, particularly targeting higher-income earners and long-term investments.

Unrealized Gains

President Trump opposes any taxation on unrealized capital gains—profits on assets that have increased in value but haven’t been sold. Harris, through the Biden administration, has proposed a 25% minimum tax on unrealized gains, which would apply to certain wealthy taxpayers.

Stock Buybacks

Trump is against increasing taxes on stock buybacks, whereas Harris’s budget proposal includes a significant increase, which could reduce corporate stock buyback activities and affect retirement accounts such as 401(k)s and IRAs.

Global Minimum Tax

Trump is not in favor of a global minimum tax, arguing it would harm U.S. businesses and job creation. Harris and the Biden administration have pushed for a 15% global minimum tax on corporations, aimed at preventing profit-shifting to low-tax jurisdictions.

Credit Card Interest Rates

Trump supports temporarily capping credit card interest rates at 10%. Harris has not taken a position on this but surrogates of her campaign has attacked Trump’s capping of credit card interest rates as “socialism.” 

Death Tax

The Tax Cuts and Jobs Act doubled estate tax exemptions, allowing more wealth to be passed down without heavy taxation. Harris, however, supports removing the step-up in basis, which would increase taxes on inherited assets, potentially complicating matters for small businesses and farms.

This article outlines the key differences between President Trump’s and Kamala Harris’s tax proposals across several important categories. We take no particular position on which tax vision is best for the country. However, voters should be aware of the tax plans for the major candidates in the Presidential election.