US elections: How the presidential candidates stand on taxes

The looming expiration of the Tax Cuts and Jobs Act (TCJA) and the upcoming election have brought tax policy to the forefront of political discussions, with both parties presenting divergent approaches to future tax changes. Despite potential shifts in party control, the narrow majorities in Congress are expected to persist, complicating any substantial tax reform efforts.

Historical precedents, such as the stalled "Build Back Better Act," illustrate the challenges of advancing tax legislation in a closely divided Senate. Current proposals from both presidential candidates, such as taxing unrealized capital gains or removing taxes on Social Security benefits, face significant obstacles in gaining legislative traction.

Donald Trump aims to extend TCJA provisions and potentially reduce corporate tax rates, while Kamala Harris proposes higher taxes for high-income earners and increased corporate tax rates. Regardless of the election outcome, rising federal deficits and the solvency issues of Social Security and Medicare indicate a likely trend towards increased taxes in the future.

This fiscal environment suggests a potential disproportionate impact on individual taxpayers and small businesses, emphasizing the need for strategic financial planning and consultation with advisors to mitigate future tax risks.