Money comes into the US Treasury through taxes (revenue), and leaves the Treasury in various forms of spending. Spending can be in the form of a program like SNAP (food stamps) or in the form of a (refundable) child tax credit. Either way, if there is less revenue than money spent, there is a deficit and a contribution to the $35.7 trillion national debt. Most people agree that the growth in national debt is bad for the country’s future.
Therefore, any new changes to our national tax laws MUST include a clear plan to pay for new cuts or expenditures.
Kamala Harris has done that. Her changes are all geared to help the middle class and the working poor. Her plan, plus how to pay for it, are explained clearly in my previous two articles: “Reason #40” and Reason #41.”
Harris put together a plan that was presented like a coordinated package. She devoted most of an entire speech to it in Raleigh, NC on August 16. It was an outline that had many parts, and she kept her focus on it without jumping to grievances or insults of her opponent, and without changing topics 3 dozen times.
You can watch the speech here if you have the time for it. The link should open you to about 5 minutes before she speaks.
This was followed by a detailed written explanation of the plans. Eighty pages (with pictures!). It is pretty thought out. People leave comments here and there about specific parts, like the $25k new homebuyer tax credit, without realizing it does not stand alone but with a group of specific plans to get new affordable housing built! The plan is comprehensive, explaining several ways to increase revenues to pay for her proposals. I kept looking for something on her website from the time of the convention — nope, no policy or issue statements. Well, she took her time, calm and steady, and month later: wow!
You can access her economic policy plan booklet here.
On the other hand, Trump has been planning to run for President in 2024 for the last four years. Other than telling a group of billionaires in April that he plans to extend all the 2017 tax cuts, he didn’t think to start throwing out ideas until after Harris released her plans. Never in a coherent policy speech. Just random, impulsive announcements which could be via a Truth Social tweet or in the middle of a long rally harangue.
“Whether he is speaking to retirees, corporate executives or tipped workers, former President Donald J. Trump has made a habit of promising tax cuts that could cost trillions.” (NY Times, 9/18/24). I have made a list with my reactions:
Trump gives no specific revenue plans except that he expects to have increased tariffs, which economists say are bad for the economy. See “Reason #1” !!
Meanwhile….
Again, Presidents do not make tax laws. They can only propose and “lobby” the Congress to adopt their plans. Therefore, knowing the GOP generally opposes plans to help the middle class and the workers just surviving, and generally favor the wealthy class, remember:
Resources:
- Trump’s Message to Billionaires (The Fiscal Times, 4/8/24): https://www.thefiscaltimes.com/newsletter/20240408-Trump-Promises-Billionaires-Ill-Keep-Your-Taxes-Low
No Tax on Social Security Income?
- (NYTimes, 8/7/2024): https://www.nytimes.com/2024/08/07/business/economy/trump-tax-cuts.html
- (American Enterprise Institute, 8/2/24): https://www.aei.org/economics/social-security-benefits-should-not-be-tax-free/
No Taxes on Overtime Pay?
- (Kiplinger Personal Finance, early Sept): https://www.kiplinger.com/taxes/whats-happening-with-taxes-on-overtime-pay
- (Tax Foundation, 9/17/24): https://taxfoundation.org/blog/trump-overtime-tax-exemption/
Remove the SALT Cap?
- Massachusetts property taxes (smartasset,10/9/24): https://smartasset.com/taxes/massachusetts-property-tax-calculator#:~:text=Overview%20of%20Massachusetts%20Taxes&text=The%20median%20annual%20property%20tax,the%20national%20average%20at%200.99%25.
- History, Pros and Cons (Bipartisan Policy Center, 8/9/24): https://bipartisanpolicy.org/explainer/how-salt-may-shake-up-the-2025-tax-debate/
Harris/Walz’s Plan to Lower Costs and Create an Opportunity Economy [Tax code proposals and similar]: https://kamalaharris.com/wp-content/uploads/2024/09/Policy_Book_Economic-Opportunity.pdf
Summary Video (Wall Street Journal, 9/12/2024): https://youtu.be/pPlhS22BG9k?feature=shared
The deceitful Trump campaign TV ad suggesting that everyone’s taxes will go up under Harris (NYTimes, 10/3/24): https://www.nytimes.com/2024/10/03/us/politics/trump-ad-harris-taxes.html
