In U.S. politics, tax policy often becomes a critical issue for defining economic priorities and future plans.Vice President Kamala Harris and former President Donald Trump have each championed tax policies that reflect the economic ideologies of their political parties. Their individual views tend to differ drastically.However, ahead of the 2024 general election, both Harris and Trump have come out saying they support the removal of taxes on tips for workers in the service industry.What are the points where they disagree? Here’s the breakdown:Kamala Harris’ tax policy: Taxing corporations to support the middle classHarris aligns with progressive tax policies that aim to reduce income inequality by shifting a greater tax burden onto wealthy individuals and corporations.Her stance is similar to that of President Joe Biden, under whose administration several tax proposals have been advanced that Harris supports.According to U.S. News and World Report, a cornerstone of Harris’ policy is raising the corporate income tax rate from 21% to 28%. This ensures that businesses, especially large corporations, contribute a larger share of federal revenue. Harris and her running mate, Minnesota Gov. Tim Walz, believe that these tax increases on the wealthy and corporations will fund critical public services, such as infrastructure, education and health care.Harris has also proposed increasing the Medicare tax from 3.8% to 5% for people making more than $400,000. This includes raising the top individual tax rate from 37% to 39.6%. Additionally, Harris advocates for increasing the capital gains tax rate for those earning more than $1 million annually, aiming to close the gap between how investment income and wage income are taxed.Harris also supports measures to expand the child tax credit to $3,600 for children aged 2-5, $3,000 for children 6-17, and $6,000 for a childs first year. This credit provides significant financial relief to middle- and lower-income families.Harris and Walz also plan to provide $25,000 down payment assistance to qualifying first-time homebuyers and increase the $5,000 tax deduction for small business startup costs to $50,000.Donald Trumps tax policy: Cutting taxes to boost businessesDonald Trump’s tax policies, in contrast, are rooted in Republican principles that emphasize lower taxes, particularly for businesses and high-income earners, with the belief that such cuts spur economic growth. His signature legislative achievement, the Tax Cuts and Jobs Act (TCJA) of 2017, slashed the corporate tax rate from 35% to 21% and reduced individual income tax rates across most brackets.His 2024 campaign with running mate JD Vance builds off of plans from his previous presidency. Trump and Vance have proposed ending taxes on Social Security benefits and imposing a 10%-20% tariff on most imported goods and a 60% tariff on goods imported from China. U.S. News and World Report clarifies that a tariff is a tax on imported goods and is typically used to encourage consumers to buy products made domestically.What policy outcomes could look like The tax policies advocated by Kamala Harris and Donald Trump reflect starkly different economic ideologies. Harris’ focus is on redistributing wealth to reduce inequality and support middle-class families, while Trump prioritizes tax cuts to incentivize business investment.The Republican plan with Trump would “would increase primary deficits by $5.8 trillion over the next 10 years,” according to the Penn Wharton Budget Model. The same budget model reports that Harris plan would “increase primary deficits by $1.2 trillion over the next 10 years.”
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As reliable as the election cycle, the advertisements for ballot questions are once again flooding the internet and the airwaves in Massachusetts. This election, some of the most heavily advertised questions before voters involve whether to set a minimum wage for tipped workers, whether to keep the MCAS test as a graduation requirement and whether to legalize natural psychedelics for treatment.But a close look at the money that is paying for those ads reveals barely any grass-roots support, meaning small donations from typical voters. Instead, the average donations are thousands if not tens of thousands of dollars, made by wealthy individuals, corporations and unions. Sometimes there is a clear line between the donors’ interests and the outcome of the election. Other times, the connection is not so clear.Take Question 4, asking voters to approve psychedelics for treatment. So far, no money has been donated to oppose it.But $4.4 million has been donated as of Oct. 1 to support it, according to data from the state Office of Campaign and Political Finance. A 5 Investigates’ analysis shows that 80 percent of the money comes from out of state. In fact, more money has come from California than Massachusetts. The top donor, giving $1 million to the campaign, is All One God Faith Inc., a California company operating as Dr. Bronner’s, a natural products company.Two individuals gave $500,000 each: a Beverly Hills philanthropist and Massachusetts donor, the chief technology officer of local software company HubSpot. Overall, the average donation is $74,186.A spokesperson for the campaign supporting the psychedelics ballot question said, “The Yes on 4 campaign is about creating new mental health treatment options for those suffering from PTSD, depression, and other conditions that traditional medicine has failed. We have received contributions as small as one dollar from dozens of individuals who are extremely passionate about finding new pathways to health for themselves and anyone else who feels like they are out of answers.”A spokesperson for the campaign opposing legalization of psychedelics said the effort is being run by “volunteers and grassroots supporters who know this is an ill-conceived ballot question with dangerous repercussions” that “provides nothing more than false hope and empty promises to people in desperate need of help and it is truly shameful.”Speaking generally, Northeastern University political science professor Costas Panagopoulos said ballot questions in Massachusetts often draw special interest money.”We’re seeing a ton of money being spent, and a lot of that money is not coming from voters, it’s not coming from average people, it’s coming from corporations and other entities that have a vested interest in the outcome of these ballot initiatives,” Panagopoulos said.”Who are these people, and what are they trying to get by donating to this?” 5 Investigates’ Karen Anderson asked.”Sometimes they really care about these issues, but oftentimes there are corporations and other entities that stand to benefit a great deal from whatever happens in places like Massachusetts. They can make a lot of money depending on the outcome of these races, and that’s why they invest so heavily,” he said.Panogopoulos said the floodgates to special interest money opened in 1978 after the U.S. Supreme Court ruled against a Massachusetts law blocking corporate money from ballot questions. Since 1988, we found campaigns have spent nearly $400 million on ballot questions, according to OCPF data.Unlike candidates for office, committees supporting or opposing a ballot question can accept donations of any size from individuals, corporations, unions or other groups. Candidates can only accept $1,000 per calendar year from individuals, unions and some other groups. Businesses cannot donate to candidates in Mass.With Question 5, which would raise the minimum wage for tipped workers, 97 percent of the nearly $1 million supporting it comes from the progressive group One Fair Wage.Opposing it is $1.5 million in donations from restaurant owners and the Massachusetts Restaurant Association, among others. The Mass. Restaurant Association alone has given $630,788 as of Oct. 1.The group opposing raising the minimum wage for tipped workers said in a statement: “The Committee to Protect Tips is proud to be the most bi-partisan coalition of elected officials, restaurants, tipped employees and advocacy organizations formed this cycle. Our coalition has contributions from a wide variety of restaurants including many neighborhood restaurants and small businesses. We are extremely humbled by the almost 100 servers and bartenders that have contributed to the campaign on their own. We are the ONLY campaign working on Question 5 to have received contributions from servers and bartenders working in Massachusetts.”A spokesperson for the campaign in support of raising the minimum wage did not respond to requests for comment.Question 2, which would eliminate the MCAS as a graduation requirement if passed, is not exactly drawing grass-roots support either. The Massachusetts Teachers Association has funded the entire $7.6 million campaign so far to convince people to vote yes.On the other side: CEOs and business groups including the Mass. Business Alliance, Mass. High Technology Council and the Greater Boston Chamber of Commerce are among the donors who have given $1,526,206 in all.A spokesperson for the Massachusetts Teachers Association said the effort is grass-roots because the MTA’s budget is comprised entirely of dues from its members: public school and college educators.”We don’t have a dime from corporate interests, foundations, anything else. This is all our members’ money and they vote for their representatives to take on these campaigns,” the spokesperson said, adding that the donors to the campaign wanting to keep the test as a graduation requirement are mostly “big corporate executives, corporations, right-wing and education reform groups.”A spokesperson for the group opposing Question 2 said the group was “a broad coalition of teachers, parents, education advocates, and community and business leaders formed to preserve high standards for students and ensure equitable academic opportunities for all kids across the Commonwealth.”The campaign spokesperson added: “The special interest in this campaign, the Massachusetts Teachers Association, proposed the ballot question to advance its own interest and is wholly financing it from its own bank account without even one penny donated by anyone else. It has dipped into its vast campaign war chest to spend millions of dollars to weaken our states education standards.”Voters should know who are funding the ads that are trying to influence them, but the information is not always apparent, Panagopoulos said.”Oftentimes, these ballot initiatives are so under the radar that voters don’t have the kind of information they need to evaluate them adequately,” he said.”And does that lead to good public policy?” Anderson asked.”Sometimes it does and oftentimes it doesn’t, because the outcomes are reflecting the preferences of the entities that funded powerful advertising campaigns,” he said.
Proposition A would raise the minimum wage to $15 an hour and mandate one hour of paid sick leave for every 30 hours worked.
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