With the news dropping this weekend that Biden is out of the race, we will most likely see Kamala Harris as the Democratic candidate.  

While it isn’t official that she is the candidate. 

And she hasn’t released formal tax policies she would propose. 

We can take cues from her primary run during 2020. 

Understanding these policies can help you prepare and adapt your tax strategies accordingly.

Raising Taxes on High-Income Earners:

• Increasing the top marginal income tax rate from 37% to 39.6% for the highest earners
• Taxing capital gains and dividends at ordinary income tax rates for high-income individuals
• Expanding the estate tax

Corporate Tax Changes:

• Raising the corporate income tax rate to 35% (higher than Biden’s proposed 28%)
• Eliminating tax breaks for fossil fuel companies

Tax Relief for Lower and Middle-Income Families:

• Implementing the LIFT (Livable Incomes for Families Today) Act, providing tax credits of up to $6,000 per year for working families
• Expanding the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)
• Proposing a renters’ credit for those spending over 30% of their income on rent

New Taxes and Fees:

• Implementing a financial transaction tax on stock, bond, and derivative trades
• Proposing a climate pollution fee to reduce emissions
• Suggesting a 100% tax penalty on pharmaceutical companies profiting from “abusive” drug prices

Other Proposals:

• Supporting a carbon tax and extending renewable energy tax credits
• Implementing a 4% “income-based premium” on households making over $100,000 annually to fund her version of “Medicare for All” (though she later changed her stance on this)

While none of this is official from Kamala Harris or the democratic party, each candidate’s policies present unique challenges and opportunities.

As the election approaches, staying informed and proactive with your tax planning is essential.