- Trump plans to offer tax relief to over 93 million Americans by extending and deepening the 2017 Tax Cuts and Jobs Act.
- Harris’s tax reform focuses on increasing taxes for high-income individuals and expanding tax credits for low-income Americans.
- Both plans have significant implications for the economy and could impact the cryptocurrency market differently.
Donald Trump plans to offer tax relief to over 93 million Americans. The former President’s tax reform proposal aims to discount several parts of the [what] by removing income taxes from bids and Social Security.
The proposal revolves around extending the 2017 Tax Cuts and Jobs Act, which at the time lowered taxes for all American income groups. Although the lowered taxes benefitted the bulk of the American tax-paying community – several reports weighed in about the 2017 Act benefitted the wealthiest disproportionally.
In fact, Trump’s updated proposal aims to weigh in even further into tax cuts when compared to the 2017 Act. For starters, the modern proposal plans to lower taxes by 15% more than the former.
Also, Trump now looks to introduce a fairer approach by reducing taxes on all Social Security benefits – which would greatly impact low-income communities.
Imports would see a raised tariff of 10%-20% – while Chinese imports would receive a tariff of up to 60%.
Overall, this campaign’s tax reform proposal appears to be a more approachable and inclusive measure when compared to its 2017 predecessor. Also, the sharp increase in import tariffs – particularly from China – remains in line with Trump’s protectionism and goal of maintaining the U.S. Dollar as the dominant global currency.
Can This Tax Reform Affect The Crypto Market?
Generally speaking – if the plan is successful in lowering taxes for all-income citizens – the cryptocurrency market could see added benefits in this imaginative scenario.
With more disposable income – riskier assets tend to become more attractive to investors. This could lead to an increase in adoption and trading volume on exchanges. Also, a more liquid market could fuel more stability and less volatility in the space.
Kamala Harris Tax Plan, How it Differs
The Democratic nominee has also released a detailed plan for tax reform in the United States. One of the key differences between the two proposals is that Harris will look to increase taxes for high-income individuals – while Trump plans to reduce taxes all around the board.
Furthermore, Harris plans to expand tax credits for low-income Americans – while not explicitly stating a reduction in this demographic. The Vice President will also look to maintaining or raising corporate tax rates and reducing the tax exemption threshold.
In sum, Kamala’s approach to tax reform aims to be a lot stricter with a clear plan of providing the bulk of the income from the wealthiest.
