Key Takeaways:
– Kamala Harris’ tax policy would raise taxes for the nation’s top 1% and cut them for all other income groups.
– Trump’s plan allegedly favors the rich 5% of Americans at the expense of others.
– The contrast between the plans of the two leaders is stark.
– The analysis was based on Harris’ proposed tax reforms, if implemented in 2026.
– The poorest 20% of Americans would see an average tax cut under Harris’ plans, while the richest 1% would see an average tax increase.
Tax Policies: Trump vs. Harris
A recent study suggests interesting contrasts in the tax proposals presented by former President Donald Trump and current Vice President Kamala Harris. Apparently, Donald Trump’s tax policies lean in favor of America’s wealthiest citizens and prosperous corporations. On the flip side, Kamala Harris aims to promote economic equilibrium. Her approach would marginally raise the taxes of the top 1% wealthiest Americans while ensuring tax reductions for all other income brackets.
A Study of Contrasts
For ease of understanding, let’s get into some numbers. If Kamala Harris were to bring her proposals to life in 2026, the richest 1% of Americans would see a tax increase equivalent to 4.1% of their income. In other words, those with a yearly income close to or exceeding a million dollars would experience this hike.
At the same time, all other income groups would enjoy a reduction in taxes. The middle fifth of Americans would see an average tax cut equal to 2.7% of their income. The lowest fifth of Americans, arguably the most financially vulnerable citizens of America, would see an even more significant boost as their taxes are reduced by a whopping 7% of income.
Translating Tax Change to Dollar Amounts
These percentages translate into tangible dollar amounts. Under Harris’ proposed plan, the poorest 20% of Americans would see an average tax cut of $1,130 in 2026. Meanwhile, the wealthier 1% would have to shell out an extra $121,460 a year on average.
Trump Tax Cuts in Review
In juxtaposition to this, let’s look at Trump’s tax plan. Trump’s proposals, as the study suggests, primarily favor the rich, potentially leading to a widening economic gap. Specifically, his tax proposals favor the richest 5% of Americans by reducing their tax share while increasing it for the entirety of the rest of the population.
A Wealthy America
At this point, it is worth noting the wealth currently amassed by the top 1% in America. As of the end of last year, this group collectively owns nearly $45 trillion in wealth. That’s not just a hefty amount; it’s at an all-time high. It’s important to remember that the 2017 Trump-GOP tax cuts played a significant role in this growth, adding over $2 trillion to the total net worth of the nation’s billionaires.
The Real Winners under Harris’ Plan
According to the same analysis, if you are part of the richest 1% or a foreign investor who reaped the benefits of the Trump tax cuts, Kamala Harris’ plan would have you paying more. However, if you fall out of this exclusive circle, it’s good news for you. Under Harris’ plan, the majority of Americans would enjoy a reduction in their overall tax payments because the saved money would be diverted towards supportive measures. Harris intends to use the tax code to alleviate costs, aid upbringing of children, provide health insurance, housing, and other necessities.
Therefore, while the top 1% may cringe at the numbers, Kamala Harris’ tax policy promises benefits for the remaining 99%. This approach aims to promote a more equitable economic landscape in America, upholding the belief that the country’s wealth should be enjoyed by more than just an exclusive few. After all, a prosperous nation is one where prosperity is shared by all.