Jaspreet Singh Breaks Down Kamala Harris’ 2025 Tax Plan

Nicole Spector
4-min read

Vice President Kamala Harris could be the 47th president of the United States — if a blue wave rises victoriously in November. Should the democratic nominee take the Oval Office, things could change for taxpayers in 2025. What might we expect?

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In a video posted on August 30th of this year, Jaspreet Singh, a financial expert and host of the popular YouTube channel “Minority Mindset,” broke down Harris’ tax plan as he understands it. Here’s a closer look at how Singh anticipates Harris’ tax plan could affect Americans as well as the most recent updates Harris has proposed.

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Singh: 4 Ways Harris’ 2025 Tax Plan Would Affect Filers

Tax Relief For First-Time Homebuyers

Singh first noted that Harris has said that she wants to give up to $25,000 in down payment assistance to first-time homebuyers. This $25,000 would be specifically allocated to the first 400,000 first-generation homebuyers or homebuyers whose parents don’t own a home, and up to $10,000 tax credit for first-time homebuyers.

A Bigger Child Tax Credit

Next, Singh highlighted Harris’ vow to raise the Child Tax Credit up from $2,000 to $6,000, which could help a lot of low-income families.

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Tax-Free Tips

Tipping is a contentious issue, with many Americans feeling, frankly, over it. Regardless of whether you like it or not, if you get tips, Harris wants it to not count as federally taxable income. This would mean tips would be “under the table,” as it were, across the board.

Possibly Higher Income Tax Rates

Roll up your sleeves; this one is complex. A Harris presidency could usher in significant income tax changes. But first, let’s see where we stand now.

Singh took to his whiteboard to lay out the current income tax brackets:

  • If you make less than $11,600, your top tax rate is 10%.

  • If you make between $11,600 and $47,100, your top tax rate is 12%.

  • If you make between $47,100 and $100,500, your top tax rate is 22%.

  • If you make between $100,500 and $191,900, your top tax rate is 24%.

  • If you make between $191,900 and $243,700, your top tax rate is 32%.

  • If you make between $243,700 and $609,300, your top tax rate is 35%.

  • If you make over $609,300, your top tax rate is 37%.

“What this means is that if you make $50,000 a year, the first $11,600 is taxed at 10%,” Singh said. “Then, between $11,600 and $47,100, your income is taxed at 12%. And for the $2,900 over $47,100, you’re gonna be taxed at 22%.”

These tax rates, set by the Trump’s Tax Cuts and Jobs Act of 2017, are set to expire at the end of 2025. Should Harris become president, her administration would likely let it expire on schedule — and “tax rates would go back up,” Singh said.

Singh then went on to explain what the top tax rates were prior to the Trump’s Tax Cuts and Jobs Act of 2017. They were indeed higher for all but those earning $11,600 or less.

“It looks like Kamala Harris does want this act to expire as a way to raise some more taxes,” added Singh.

Other Important Details of Harris’ Proposed Tax Plan

It’s important to note that Singh’s video went up a few days before Harris unveiled more detailed aspects of her tax plan. Consider the following in addition to what Singh noted.

  • A 28% tax on long-term capital gains for any household with an annual income of $1 million or more. This is much lower than the 39.6% rate that President Joe Biden detailed in his 2025 fiscal year budget, but still higher than the current 21% rate established by Trump’s Tax Cuts and Jobs Act of 2017, which is set to expire at the end of 2025.

  • Support of the Billionaire Minimum Income Tax. There have been efforts on the part of the Biden administration to enact the Billionaire Minimum Income Tax, which imposes a minimum tax on individual taxpayers whose net worth for the taxable year is north of $100 million. The tax is equal to 25% of the sum of a taxpayer’s taxable income, plus net unrealized gains for the taxable year, according to Congress.gov. However, these levies have to-date failed to make it through Congress.

  • Quadrupling the tax on stock buybacks to 4%. Harris supports this levy that was created by the Inflation Reduction Act, passed in 2022.

  • A 10-fold tax deduction for small businesses. Harris has also proposed a 10-fold tax deduction for small businesses — from up to $5,000 to up to $50,000 — in order for more small businesses to open and operate in the U.S.

Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out, Here Are All the Promises Trump Has Made About Taxes if He’s Re-Elected.

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This article originally appeared on GOBankingRates.com: Jaspreet Singh Breaks Down Kamala Harris’ 2025 Tax Plan