As the 2024 primary season approaches, Republican presidential hopefuls Florida Gov. Ron DeSantis and former South Carolina Gov. Nikki Haley, along with former President Donald Trump and current President Joe Biden, have begun to outline their tax plans. However, the specifics of these proposals remain largely undisclosed.
According to Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, the candidates are being “deliberately unspecific.” All candidates, including Biden, have expressed a desire to extend some measures of the 2017 Tax Cuts and Jobs Act, a law championed and signed by Trump. The fate of these individual income tax provisions, set to expire at the end of next year, will be a top priority for the November election winner.
DeSantis’ Tax Plan
Gov. DeSantis has voiced support for a flat tax, but only “if people are better off than they are now.” He has not specified the rate of this tax or how he would handle deductions, exemptions, and credits. DeSantis also expressed a desire to eliminate the IRS, extend the TCJA’s individual tax rates, tighten international tax rules, and make permanent a now-expired TCJA provision allowing businesses to immediately deduct 100% of their investment in machinery and equipment.
Haley’s Tax Plan
Former Gov. Haley has proposed eliminating the federal gas and diesel tax, cutting taxes on the middle class, and simplifying tax brackets. She also expressed a desire to make the TCJA’s small business tax cuts permanent and eliminate $500 billion in green energy subsidies. Haley also mentioned reconsidering the state and local tax deduction, which allows taxpayers to deduct a portion of their state and local income, general sales, and property taxes from their federal income taxes.
Trump’s Tax Plan
Former President Trump has proposed a universal baseline tariff of 10% on all US imports, in line with his less favorable view of global trade. He has also supported extending the TCJA’s individual income tax breaks and reducing the corporate tax rate from the current 21% to 15%.
Biden’s Tax Plan
President Biden has expressed support for raising taxes on corporations and higher-income Americans, while protecting those earning less than $400,000 annually. His proposals include increasing the top individual income tax rate to 39.6%, from 37%, for individuals earning more than $400,000 and married couples with incomes above $450,000. He also proposed a Billionaire Minimum Income Tax and an increase in the corporate income tax rate to 28%, from 21%.
As the election season progresses, more details about these tax plans are expected to emerge.