This story at a glance…

1. Trump’s tax plan extends cuts and adds tariffs, potentially raising prices on imported goods.  

2. Harris’s plan cuts taxes for most families, raises them on the wealthy, and boosts credits for children and homebuyers.  

3. Both aim to reshape the economy with different methods — broad cuts versus targeted relief.  

4. The outcome hinges on political support and finding a balance between growth and fairness.

The Great Tax Debate: Trump vs. Harris

As we get closer to the 2024 presidential election, the tax plans of Donald Trump and Kamala Harris have become a big topic of discussion. Imagine two athletes racing in opposite directions: Donald Trump’s plan heads toward lower taxes and higher tariffs (taxes on imports), while Kamala Harris is focused on cutting taxes for most Americans but raising them on the wealthiest. Each plan will affect how much we pay in taxes, the cost of everyday items, and the health of the economy.

Trump’s Tax Plan: Lower Taxes and Higher Tariffs
Donald Trump wants to take what he did in 2017 with his big tax cuts and go even further. Here’s what his plan looks like:

1. Keeping the Tax Cuts Going: Trump wants to extend the tax cuts he introduced in 2017 that are set to expire in 2025. Think of it like a sale that was supposed to end soon, but the store decides to keep the discounts going. This would mean lower taxes for most people, but it also means the government would collect about $4 trillion less over the next decade, like a store making less money because they’re selling everything at a discount.

2. Lower Taxes for Companies That Build Stuff in the U.S.: He wants to cut the tax rate for companies from 21% to 15%, but only for those who make their products in the United States. Imagine a neighborhood that gives special deals to local businesses to encourage them to stay. While this might help create jobs, it also means the government would collect less in taxes, costing about $200 billion over ten years.

3. No Taxes on Social Security Benefits: Trump proposes getting rid of income taxes on Social Security benefits — money that retirees receive each month. It's like saying, “You don’t have to pay a fee to withdraw your own savings from the bank.” This sounds great for retirees, but it could cost the government $1.8 trillion and might mean the Social Security fund could run out of money sooner.

4. Charging Extra for Imported Goods: To make up for these cuts, Trump plans to charge more for things coming from other countries, especially China. It’s like charging a toll for cars coming into a city. This could bring in money — about $3 trillion over ten years — but it could also make everything a bit more expensive, like groceries or clothes, since businesses usually pass those extra costs onto customers.

Harris’s Tax Plan: Helping Families While Asking More from the Rich
Kamala Harris’s tax plan is heading in a different direction. Think of it like redistributing allowances in a household: giving more to those who need it while asking those who have more to chip in a little extra. Here’s the breakdown:

1. Keeping Tax Cuts for Most People: Harris wants to keep the current tax cuts for anyone earning less than $400,000 per year. It’s like making sure everyone gets to keep the same allowance they've been getting. This would cost the government about $2.8 trillion over ten years, but most middle and lower-income families would see no change or even pay less.

2. More Money for Families with Kids: Harris wants to give bigger tax credits to families with children — up to $6,000 for young kids. Think of it like doubling the size of a coupon, giving parents more cash back at tax time. This would help families afford things like diapers, baby formula, or childcare. The government would spend about $1.2 trillion on this over ten years, but many families could feel the relief directly in their wallets.

3. Helping First-Time Homebuyers: She also proposes a tax credit for people buying their first home — $25,000 to help with the down payment. It’s like a big “welcome to the neighborhood” gift. This could make it easier for many people to buy a home, but it would cost the government around $100 billion.

4. Higher Taxes on the Rich and Big Companies: To pay for these benefits, Harris suggests raising taxes on the wealthiest Americans and corporations. Think of it as asking the people who’ve been winning the family Monopoly game to put a little more back into the bank so everyone can keep playing. She proposes raising the corporate tax rate to 28% and implementing a new minimum tax for those with a net worth over $100 million, aiming to raise about $5 trillion over ten years.

What Does This Mean for Everyday Americans?
Let’s simplify it even more. Imagine a neighborhood where the community pool (the government budget) needs maintenance. Trump’s approach is like saying, “Let’s cut everyone’s fees, but we’ll charge extra for anyone who brings in snacks from outside (tariffs on imports).” This approach might be popular with those who use the pool often (enjoy tax cuts), but it could make the pool manager (the government) struggle to cover maintenance costs without raising snack prices (import costs).

Meanwhile, Harris’s plan is like charging higher fees to the residents with the biggest homes (wealthy and corporations) while giving discounts to those in smaller homes (middle and lower-income families). This strategy ensures the pool stays open, but some residents might feel they’re paying more than their fair share.

Both plans have trade-offs. Under Trump’s plan, while taxes may go down, the prices of everyday goods could go up due to tariffs, which could hit middle-income families hardest. Under Harris’s plan, most families would see a tax cut or benefit from new credits, but wealthier individuals and corporations would face higher taxes.

The Political Reality: Can These Plans Succeed?
Whoever wins the presidency will also need the support of Congress to make their plans happen. If they can’t get a majority in both the House and the Senate, their proposals might get stuck in gridlock. And if no agreement is reached by the end of 2025, many Americans could see their taxes go up as current tax cuts expire.

Reflection 
The Bible encourages us to care for one another and give generously, as 2 Corinthians 9:7 reminds us, "God loves a cheerful giver." These words challenge us to think about how we share our resources and support those in need, whether through personal giving or through the policies that govern us. We may not all agree on the best path forward, but we can pray for wisdom for our leaders and for a spirit of generosity in our hearts, trusting that God will guide us in building a community that cares for everyone.