2024 Presidential Election: Key Differences in Tax Strategies

With the U.S. presidential election fast approaching on Nov. 5, many of our clients are eager to understand how potential tax policies could shift depending on the outcome and how these changes could impact them. Both former President Donald Trump and Vice President Kamala Harris have outlined their tax strategies, but it’s important to remember that these 2024 election tax plans could evolve before or after the election. Additionally, any new tax laws would require approval from Congress.

Regardless of the election outcome, we encourage our clients to focus on their long-term financial goals. While tax policy changes can undoubtedly have an impact, they are just one part of a much larger picture. By taking a disciplined and diversified approach, you can confidently navigate any uncertainties. We believe patience and a steady focus on the bigger picture are critical to long-term financial success.

To help you better understand the Trump vs. Harris tax plans, we’ve summarized the core differences below to help you better understand the candidates’ tax proposals. For a more in-depth analysis, we recommend reviewing insights from the nonpartisan Tax Foundation.

Key differences in candidate tax plans

The tax plans proposed by Harris and Trump reflect distinct priorities. Trump’s plan focuses on maintaining the 2017 Tax Cuts and Jobs Act (TCJA), aiming to stimulate economic growth through lower taxes. Harris, meanwhile, proposes tax increases for high earners and corporations to fund social programs. Below are the key differences in their approaches to tax rates, capital gains and corporate taxes and how these may affect different income groups.

Tax rates and structure on high earners

• Trump: Proposes extending individual and corporate tax cuts introduced under the TCJA, maintaining lower rates and expanded deductions.
• Harris: Proposes increasing taxes on high earners and corporations to reduce income inequality and fund social programs.

Corporate taxation:

• Trump: Favors maintaining reduced corporate tax rates to incentivize investment and growth.
• Harris: Proposes an increase in the corporate tax rate to fund public investments and social programs.

Capital gains and wealth tax:

• Trump: Maintains the current structure for capital gains, which are taxed at rates lower than ordinary income.
• Harris: Plans to tax capital gains at ordinary income rates for high earners and has proposed a wealth tax.

Impact on middle-class and low-income families:

• Trump: Aims to stimulate economic growth via the tax plan, potentially benefiting the middle class through increased standard deductions as part of a broader economic strategy.
• Harris: Focuses on providing relief to middle—and low-income families through expanded tax credits and investments in social programs to alleviate financial burdens.

Final thoughts

Both Trump and Harris offer tax plans that reflect their distinct economic philosophies and have the potential for revenue growth. Trump emphasizes economic growth through tax cuts, aiming to spur investment and generate revenue. On the other hand, Harris proposes increasing taxes on high earners and corporations to fund new programs and address income inequality.

Understanding these differences is crucial in evaluating how each tax plan could impact you and beyond. Tax policies influence more than revenue generation—they shape economic behavior and address broader social concerns.

For investors concerned about how the 2024 election could impact their portfolios in 2025, it’s essential to consider how potential changes to tax policy might affect investment returns, tax liabilities and overall financial planning. Whether tax cuts are extended or higher taxes are introduced, investors should prepare for how either scenario might impact their strategies.

We encourage our clients to maintain a steady, long-term perspective, especially in political uncertainty, and to lean on our team for ongoing advice. If you’re wondering how the election results may affect your situation, our wealth managers are here to help guide your investment strategy.