The Trump-Vance Campaign’s Tax Policy Proposals

Note: This reflects the current tax policy positions taken by the Trump Campaign, which may change or be expanded upon. We will continue to update as policies are developed.  

Over the past several months, former President Donald Trump has laid out his economic agenda for the country if given a second term. Many of his policy positions are a continuation of his promises from previous campaigns, particularly his support for making the expiring provisions of the Tax Cuts and Jobs Act permanent, while others are new to this election cycle.  

Current Policy Positions 

Although former President Trump has been campaigning for over a year, his campaign has published few concrete details on what tax policies he explicitly supports. Instead, he has expressed support for certain policies through social media, press conferences, and campaign rallies, with a heavy emphasis on income tax cuts and tariff increases. 

Individual Provisions 

Like Vice President Harris, former President Trump’s campaign has focused more on individual tax provisions than business. Chief among these is his support for making the individual provisions in his major 2017 tax overhaul, the Tax Cuts and Jobs Act (“TCJA”), permanent. These include: 

• The doubled standard deduction and elimination of the personal exemption,
• The compressed tax brackets and lowered maximum tax rate, and
• The expanded child tax credit of $2,000 (possibly expanded further to $5,000). 

Additionally, Trump has expressed support for eliminating taxation on tips received by service workers, as has Harris. He has also proposed completely eliminating any taxes on social security benefits received by older taxpayers. Former President Trump has also reportedly considered eliminating income taxes completely and replacing them with tariffs, but he has not explicitly endorsed this proposal at this time.  

Corporate/Business Provisions 

The official Republican platform so far does not have significant tax proposals related to business aside from potentially lowering the corporate income tax rate. Former President Trump has expressed support for lowering rates from 21% to somewhere in the range of 15-20%, though at times he has also supported leaving the rate at 21%. He has also endorsed making the qualified business income deduction under the TCJA permanent. 

Tariffs 

One of the major differences between the Harris and Trump campaigns is their focus on the use of tariffs. Vice President Harris has not significantly addressed any positions on tariffs. Former President Trump, on the other hand, has included tariffs as a major part of his economic agenda. Trump has proposed a 60% tariff on Chinese goods – five times greater than the tariffs he imposed during his first term. The proposed “Trump Reciprocal Trade Act” (previously introduced in the 166th Congress as the “United States Reciprocal Trade Act”) would give presidents the authority to impose reciprocal tariffs on any country that imposes tariffs on U.S. goods. Additionally, Trump has proposed a “universal baseline tariff” of 10% on all imports to the U.S.  

Sen. J.D. Vance’s Policy Positions 

Sen. Vance, the vice presidential candidate, has also endorsed tax policy positions, both as Trump’s running mate and during his time as a Senator. He joined Democrats in supporting legislation that would eliminate beneficial tax treatment of mergers or reorganizations for corporations with revenue in excess of $500 million. Sen. Vance has also previously supported imposing different corporate tax rates for different industries. Additionally, he introduced legislation that would impose significant excise taxes on educational endowments, a proposal for which former President Trump has indicated some support. These proposals have the estimated revenue increases or costs over ten years:  

• A 60% tariff on Chinese goods is estimated to cost between $50-300 billion, with $2.4 trillion in revenue but a net deficit after accounting for trade losses,
• A universal base tariff is estimated to raise $2.5 trillion over ten years, reduced to a net $2 trillion when again accounting for shifting trade behaviors,
• Making the expiring provisions of the TCJA permanent is estimated to cost $4.6 trillion (note: this does not include the potentially further expanded child tax credit),
• Eliminating the taxation of social security benefits is estimated to cost $1.6 trillion. 

Republican Party Platform 

Former President Trump officially accepted the Republican party’s nomination at the Republican National Convention in July. At the same convention, the Republican Party officially adopted its policy platform. As the nominee, Trump is now the main spokesperson for these Republican policy priorities, which includes: 

• Excluding tips from income taxation
• Promoting homeownership through tax incentives,
• Creating tax credits for unpaid family caregivers,
• Passing the Trump Reciprocal Trade Act, which would allow the imposition of hefty tariffs,
• Making the individual provisions of the TCJA permanent, and 
• Withdrawing U.S. support or involvement in OECD Pillar Two, which would impose a global 15% minimum tax on corporations. 

Other Possible Tax Proposals  

Although not expressly endorsed by the Republican Party or the Trump campaign, there are other proposals with varying levels of support that could potentially become a part of the campaign’s platform, some of which are contradictory. For instance, while some wish to reduce the corporate income tax to 18% or eliminate income taxes altogether in favor of tariffs, others have expressed support for moderately raising corporate income tax rates to pay for making the individual TCJA provisions permanent.  

There have also been proposals to overhaul individual taxes by eliminating all deductions and credits and imposing two tax brackets of 15% and 30% as a first step to eliminating income taxes altogether and replacing them with tariffs or a national sales tax. Additionally, some proposals would reduce capital gains rates to a maximum rate of 15%.  

Whoever wins in November could have the opportunity to significantly reshape tax policy, either permanently or for another ten years. As always, these proposals require the support of the majority of Congress. Taxpayers should engage a knowledgeable tax advisor to help them navigate upcoming tax changes in the months and years ahead.