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2024 election insights: Comparing tax policy platforms

Sept. 4, 2024

The results of the upcoming election will have a substantial impact on the future of tax policy. Given tax policy’s influence on the economy and the magnitude of the potential Tax Cuts and Jobs Act (TCJA) of 2017 expirations, a comparison of party platforms offers valuable insights into the possible post-election landscape.

Presented below is a broader focus on party tax policy platforms rather than the individual plans of presidential candidates. While presidential budgets and tax proposals often influence legislation, only Congress has the authority to enact it. Financial measures originate in the House of Representatives and may be altered by the Senate. Identical bills must pass both chambers before the president can sign a bill into law; accordingly, tax legislation is often driven by lawmakers’ priorities. However, presidential platforms are briefly discussed at the end of this section.

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Provision	Republicans	Democrats
Corporate tax rate	Most are in favor of maintaining or reducing the corporate tax rate. Proposals for a decrease range from 20% to 15%. Only a few members have voiced support for a minor increase.	Most support an increase in the corporate tax rate. The FY25 Green Book and Harris both proposed a corporate rate of 28%.
Section 199A/qualified business income (QBI) deduction	Many would like to make this provision, currently set to expire after 2025, permanent.	Some have been critical of allowing the deduction for higher-income taxpayers. Democrats’ pledge not to raise taxes on individuals making less than $400,000 presumably includes maintaining the QBI deduction for taxpayers in those income brackets.
Research and experimental (R&E) expenditures	Support the immediate expensing of domestic R&E expenditures.	Support the immediate expensing of domestic R&E expenditures. Some also support immediate expensing of foreign R&E (as proposed in the BBB framework).
Business interest deduction limitation	Support a return to calculating adjusted taxable income (ATI) with the pre-2022 parameters that allowed for addback of depreciation and amortization.	Support a return to calculating ATI with the pre-2022 parameters that allowed for addback of depreciation and amortization.
Inflation Reduction Act (IRA) renewable energy credits	Many support a full or partial repeal of the IRA's renewable energy credits.	In favor of retaining the IRA’s renewable energy credits.

Provision	Republicans	Democrats
TCJA rates and brackets	Support making TCJA bracket sizes and tax rates permanent.	Support making TCJA bracket sizes and tax rates permanent for taxpayers making less than $400,000. The FY25 Green Book proposed a top rate of 39.6% for single and married filing jointly taxpayers to $400,000 and $450,000, respectively.
Child Tax Credit (CTC)	In favor of extending the current CTC amount ($2,000 per child) and thresholds, which were increased under TCJA and are set to expire after 2025.	Most would like to see the CTC expanded to provide a benefit of $3,000 per child ($3,600 per young child) and to make it fully refundable, as it was in 2021 under the American Rescue Plan. Harris also proposed a $6,000 credit for the first year of a child’s life.
Other TCJA Items (Standard deduction, personal exemption, itemized deductions)	Support a permanent extension of the TCJA’s individual provisions.	Support a permanent extension of the TCJA’s individual provisions for taxpayers making less than $400,000.
State and local tax (SALT) limitation/cap	Most oppose repealing or increasing the SALT cap, with the noted exception of several lawmakers who live in high-state taxes like NY, NJ, and CA.	Some support a repeal of or increases to the SALT cap. Biden opposed changes to the SALT cap, but Harris has not yet provided a position.
Wealth tax	Generally oppose a wealth tax or minimum tax rate for ultra-high-net-worth taxpayers.	Some would like to institute a wealth tax or a minimum tax rate on ultra-high-net-worth taxpayers. There is not consensus or consistency among proposals and Harris has not endorsed any wealth tax.
Taxation of gratuities	Trump proposed “no tax on tips.” Republicans in both chambers have introduced bills that would effect this change.	Harris also proposed eliminating taxes on tips, along with an increase in the minimum wage.
Affordable Care Act (ACA) subsidies	Most oppose an extension of the subsidies, set to expire after 2025. Some support a full repeal of the ACA.	Support an extension of the ACA subsidies, set to expire after 2025.
First time homebuyer credit	No significant proposals.	Harris proposed a $10,000 credit for first-time homebuyers, along with other home building and buying incentives.

Provision	Republicans	Democrats
Exemption amount	Typically support a continuation of the current estate tax exemption levels; however, many would prefer a full repeal of the estate tax.	Opinions vary and there is no consensus or consistency in proposals from lawmakers who would like to see changes.

Provision	Current TCJA treatment	Planned 2026 TCJA treatment	Green Book proposed treatment
Global intangible low-taxed income (GILTI)	Effective tax rates are typically between 10% and 13.125%.	Effective tax rates increase to between 13.125% and 16.406%.	Making adjustments that, coupled with an increase in the corporate tax rate, would result in an effective rate of 21% to 22.105%.
Foreign-derived intangible income (FDII)	Deduction of 37.5% of a domestic corporation’s FDII.	Deduction scheduled to decrease to 21.875% deduction.	Repeal the FDII deduction.
Base erosion and anti-abuse tax (BEAT)	Minimum tax rate of 10% of modified taxable income.	Schedule to increase minimum tax rate to 12.5% of modified taxable income.	Replace BEAT with an undertaxed profits rule (UTPR) similar to Pillar Two.

2024 election insights: Comparing tax policy platforms

Tax policy platforms

Related sections

The charts and discussion in the sections below are primarily based on:

Republicans

Democrats

Business tax

Individual tax

Trust, estate and gift tax

International tax

Other items

Deficit creation

Republicans

Democrats

Internal Revenue Service funding

Republicans

Democrats

Presidential platforms

Trump

Harris

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