[Music] If you care about your money listen up Vice president Harris and former President Trump's tax plans will affect Your paychecks but in different ways of Course depending on who wins in November The Democratic nominees proposed tax Benefits for families and a hike on the Corporate tax rate while the Republican Nominee is seeking to extend the cuts Passed during his administration back in 2017 let's bring in CBS money watch Associate man managing editor Amy pey Joining us from Vermont uh let's start With with Trump Amy How would extension Of his tax cuts change how people's Paychecks are Calculated Yeah so basically the Trump Tax cuts went into effect in 2018 and They basically lower taxes for every tax Bracket but these tax cuts are due to Expire at the end of 2025 so if Trump Wins election in November he's expected To try to extend those tax cuts um and Basically again every group would see Some kind of benefit um leiser Projection but some groups will do Better than others for instance the top Earners the top .1% these are people of Average income of more than 14 million a Year we see their income increase by $376,000 a year in 2026 and the lowest Earning Americans that have about 20,000 Of income a year would get about a 320
Annual increase um but again these are Tas cuts that are already in effect so In a way you wouldn't really see much of A change but you would just see that Continuation that's kind of what we've Been living with the one big change However would be for people on social Security because Trump wants to Eliminate taxes on Social Security Benefits and the folks who would really See a benefit for that are middle income And higher income uh senior citizens Because they're the ones who really are Paying those taxes on those benefits so They would actually get the biggest Boost from his plans at this point yeah It really does matter where you sit in The economy how much you make and and What benefits you're you're reaping now What then would Harris's plan as it's Been outlined because there's not too Many specifics what would that mean for Families as far as know right yeah and That's a really good point first of all Like there's more probably to come from The from the Harris campaign so this is Based on what we know so far and she's Expected to let the tax cuts and jobs Act Provisions expire and if that Happens is what what would happen is That um the highest income Folks at 0.1% They would end up seeing their taxes Increase by about $167,000 a year but she also wants to
Help lower income and middle- class Families through a bunch of um expanded Tax credit for instance a child tax Credit she wants to give $6,000 a year For um parents of newborns she wants to Expand the Earned Income Tax Credit so The effect of that would be a real boost To the lower and middle inome families For instance the lowest income families 20,000 a year of income would see a Benefit of 2, about 2,400 a year that's Eight times what they would get under Trump as far as we know right Now all right Amy pinky thanks so much Thank you
