As the 2024 primary season approaches, candidates from both political parties have started to outline their tax proposals. However, the details remain scarce and largely undefined. This article examines the tax plans of Florida Governor Ron DeSantis, former South Carolina Governor Nikki Haley, former President Donald Trump, and President Joe Biden.
Common Ground: Extending the 2017 Tax Cuts and Jobs Act
All candidates, including President Biden, have expressed a desire to continue some measures of the 2017 Tax Cuts and Jobs Act. However, this would result in significant reductions in federal revenue, raising concerns about increasing federal budget deficits and national debt.
Governor Ron DeSantis: Advocating a Flat Tax
Governor DeSantis supports a flat tax system, suggesting a single rate tax above a certain income level while exempting “working-class people” earning around $40,000 to $50,000. He has not specified the rate or addressed deductions, exemptions, and credits. DeSantis also aims to extend and make permanent certain TCJA tax rates, tighten international tax rules, and reinstate a TCJA provision for business investments in machinery and equipment.
Former Governor Nikki Haley: Eliminating Federal Gas Tax
Haley’s tax plan includes abolishing the federal gas and diesel tax, reducing taxes on the middle class, and simplifying tax brackets. She also supports making permanent the TCJA’s small business tax cuts and reevaluating the state and local tax deductions. Moreover, Haley proposes to eliminate $500 billion in green energy subsidies from the Inflation Reduction Act.
Former President Donald Trump: Tariffs and Tax Cuts
Trump proposes a universal baseline tariff of 10% on all US imports, aligning with his protectionist trade policies. He also favors extending the TCJA’s individual income tax breaks and reducing the corporate tax rate to 15%.
President Joe Biden: Tax Increases for the Wealthy
Biden’s tax strategy involves raising taxes on corporations and high-income individuals, protecting those earning under $400,000 annually. He supports increasing the top individual income tax rate to 39.6% for high earners and introducing a Billionaire Minimum Income Tax. Biden also proposes increasing the corporate income tax rate to 28% and quadrupling the stock buyback tax.
Conclusion
While the candidates have outlined broad tax reform visions, specifics remain elusive. This lack of detail is not unusual for this stage of an election cycle but is critical for voters seeking to understand how these tax plans might impact them and the overall economy. The final shape of these tax proposals will likely evolve as the election approaches and as candidates respond to economic conditions and public concerns.