2024 presents the rare circumstance where it appears likely that both the Democratic and Republican candidates for president have already served in that office. We have already witnessed, therefore, 2024 presidential tax proposals from both President Biden and former President Trump.
The electorate has seen annual budget tax proposals from each. We have also seen what tax legislation was enacted during their first terms as president. It is not, therefore, too much of a surprise that the basic thrust of their 2024 presidential tax proposals remains the same as before.
Trump’s 2024 Presidential Tax Proposals
The principal tax achievement during the Trump administration was the Tax Cuts and Jobs Act enacted in 2017. For businesses, it lowered corporate tax rates to 21%, created the 20% qualified business income deduction for pass-through entities, created an excess business loss limitation for non-corporate taxpayers, and more. Unlike the business provisions, most of the individual provisions expire at the end of 2025.
The Trump campaign has yet to articulate a set of 2024 presidential tax proposals for the coming four years. However, Trump has suggested imposing more tariffs on imported goods and repealing or modifying some of the tax provisions enacted under the Biden presidency.
Biden’s 2024 Presidential Tax Proposals
Early on, in response to the COVID pandemic, Biden enacted a number of tax provisions that have since been allowed to expire. Of more permanence was the Inflation Reduction Act. As outlined in his recent State of the Union Address, Biden proposes to repeal or modify some corporate tax breaks included in the Tax Cuts and Jobs Act.
For individuals, Biden would raise the marginal tax rates for wealthy individuals that were lowered in the Tax Cuts and Jobs Act; however, he would continue to push for an increase in the Child Tax Credit and propose a two-year affordable housing credit.
Biden predicts that his 2024 presidential tax proposals would reduce the deficit by $3 trillion.
2024 Presidential Tax Proposals: The TRAFWA Act
While the Biden and Trump 2024 presidential tax proposals do not appear to offer much room for compromise, especially in an election year, there is still a tax proposal that has bipartisan support that could be enacted. The Tax Relief for American Families and Workers Act of 2024 has passed the House and is under consideration in the Senate.
Summary
Aside from the possible passage of the Tax Relief for American Families and Workers Act, prospects for additional tax legislation do not look promising. The success of either set of 2024 presidential tax proposals will depend upon the outcome of the presidential election and which party manages to control the House and Senate.
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