Vice President Kamala Harris is now poised to be the Democratic party's nominee for President. And while she has yet to officially outline her policy agenda, tax experts and economists say her history in office—and previous run for the presidency—gives a good indication of what taxpayers and businesses can expect.
It’s a fair bet a Harris administration would pursue similar priorities to those of her predecessor, Joe Biden, including higher taxes on the wealthy and some businesses, says John Gimigliano, principal in charge of KPMG's federal legislative and regulatory services group.
But Gimigliano says he also expects Harris to "put her own stamp" on these ideas, like she did with the 2019 LIFT the Middle Class Act, which would have given a $3,000 refundable tax credit ($6,000 per couple) to most low- and middle-income Americans.
"One important X-Factor in scoping the direction of Harris tax policy is who her Secretary of Treasury would be," says Gimigliano. "More than anyone else in the administration, that person will have their hands on the wheel in steering tax policy."
Harris previously ran for president in 2020, and her policies then were "far more progressive" than what the Biden-Harris administration has pursued, says Jon Traub, tax policy group leader of Deloitte Tax LLP's Washington National Tax office. But that doesn't mean she would pivot to that agenda as president.
"That is not unusual for someone trying to stand out in a multi-candidate primary, but it would be unusual for her to move further left on tax or other policy items once she is the nominee," Traub says. "Normally we see candidates move toward the center once they secure their party’s nomination."
In her first campaign speech on Tuesday, Harris said everyone should have access to affordable health care and child care, and reiterated her support for paid family leave.
"Building up the middle class will be a defining goal of my presidency," Harris said. "Because we here know when our middle class is strong, America is strong."
With all that in mind, here's what else taxpayers can likely expect from a potential Harris administration.
Trump tax cuts
Most of the individual tax cuts in the Tax Cuts and Jobs Act (TCJA) former President Donald Trump signed off on while in office expire at the end of 2025. While Harris voted against the TCJA as a senator in 2017, it is not clear whether or not she would sign off on an extension of the cuts. President Biden has endorsed letting the tax cuts expire for those earning over $400,000, but not raising taxes on those making less.
In fact, to pay for the LIFT the Middle Class Act mentioned above, Harris proposed funding it by repealing all provisions of the TCJA except those providing relief to taxpayers earning less than $100,000 per year.
Aside from the individual tax cuts, the TCJA lowered taxes on businesses as well. Those cuts were made permanent. But Biden has proposed raising the corporate tax rate from 21% to 28%. He has also advocated for a minimum income tax on billionaires and an increase in the capital gains tax for high earners.
Student loan forgiveness
The Biden-Harris administration has made student loan forgiveness a cornerstone of their economic agenda, cancelling billions of dollars in debt over the past four years. It also tried to pass a wide-scale forgiveness plan that was eventually blocked by conservatives on the Supreme Court.
In addition to debt cancellation, the administration has made other changes to the public loan program, including creating a new, more generous repayment plan (that is currently on hold due to a conservative lawsuit), making significant changes to the Public Service Loan Forgiveness program, and significantly increasing Pell Grants.
Harris has long fought for students. Her investigation into for-profit college chain Corinthian Colleges as Attorney General of California eventually led to over half a million enrollees having their debt forgiven.
Child tax credit
While Harris advocated for the LIFT act a few years ago, Democrats have been pushing for a different tax credit over the past few years. The Biden administration has been advocating for bringing back the enhanced child tax credit, which reduced child poverty significantly when it was in place in 2021.
"Whereas the last administration gave tax cuts to billionaires, we gave tax cuts to families through the child tax credit, which cut child poverty in America by half," Harris said at a political event in North Carolina earlier this month.
Harris's own finances
Harris's own finances are, well, boring, according to a federal disclosures first reported by the Wall Street Journal. Most of her and her husband's assets are held in retirement accounts that are invested in index funds, and they hold a "fair amount" in cash. They also have a 2.625% mortgage rate.
But that's a good thing, financial advisors say. For most people, investing in index funds is a great way to get a low-cost, diversified portfolio.
