I Live in Arizona: 7 Reasons I’m Worried How a Kamala Harris Win in November Would Impact My Monthly Budget
Written by
Laura Beck
Edited by
Amber Barkley
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The November election is right around the corner and Americans are closely watching each candidate. One of the things people are worried about is how the outcome might affect their wallets. Sherry P., a corporate lawyer from Phoenix, counts herself amongst the election watchers.
“I’m always thinking about how politics might impact my bottom line,” Sherry said. “With Harris’s recent economic plans, I’m trying to figure out what it could mean for my monthly budget. I don’t know, my family tells me not to worry so much, but I’m watching.”
Here are seven reasons Sherry is concerned about how a Harris win could affect her finances.
Potential Tax Increases for High Earners
As a successful lawyer, Sherry falls into a high tax bracket. She’s keeping a close eye on Harris’s tax proposals.
“Harris’s campaign has mentioned increasing taxes on corporations and high earners to offset new spending,” Sherry said. “As someone in a high tax bracket, that could mean a bigger chunk of my income going to taxes.”
While specific details are still emerging, the possibility of higher taxes for top earners is a key part of Harris’s economic strategy. This could potentially impact Sherry’s take-home pay.
Changes to the Child Tax Credit
Harris has proposed expanding the Child Tax Credit, including restoring the expansion that was part of the 2021 American Rescue Plan.
“I don’t have kids, so I wouldn’t benefit from an expanded Child Tax Credit,” Sherry explained. “But if it’s implemented, it could mean less room in the budget for other tax breaks that do benefit me.”
The Committee for a Responsible Federal Budget (CRFB) estimates that Harris’s proposed Child Tax Credit expansion could cost $1.2 trillion over a decade. Sherry worries this could lead to cuts in other areas or further tax increases to cover the cost.
Housing Market Concerns
Harris has proposed a $25,000 tax credit for first-time homebuyers. While this doesn’t directly affect Sherry as an existing homeowner, she’s worried it could affect the entire housing market.
“A big influx of new buyers could drive up home prices even more,” Sherry said. “There should be a high barrier to buying a home so people know it’s not easy… I’m just not so sure about these handouts.”
Potential Impact on Investment Income
As a high earner, Sherry has significant investments. She’s worried about how Harris’s economic policies might affect the stock market and her investment income.
“Any major policy changes can shake up the markets,” Sherry explained. “If corporate taxes go up, that could potentially lower stock values or dividend payments. That’s a big part of my long-term financial planning.”
Healthcare Costs
Harris has proposed extending the Affordable Care Act premium tax credit expansion. While this is aimed at making healthcare more affordable for many Americans, Sherry’s a little concerned about how it might affect her as a high earner.
“I already pay a lot for health insurance,” Sherry said. “If the government is spending more on healthcare subsidies, I’m worried that could lead down a slippery slope — I’m talking higher premiums for those of us who don’t qualify for assistance.”
Potential Changes to Retirement Savings Rules
Harris hasn’t outlined specific changes to retirement savings plans, but Sherry’s still worried.
“I make a good salary and I maximize my contributions to my 401(k) and other retirement accounts,” Sherry said. “If there are any changes to contribution limits or tax deductions for these accounts, it could impact my finances.”
She’s particularly concerned about the possibility of lowered contribution limits or reduced tax benefits for high-income earners, but shared that this wasn’t something of immediate concern.
Possible Adjustments to State and Local Tax (SALT) Deductions
Although Harris hasn’t addressed the SALT deduction cap, it’s another thing Sherry is watching.
“The $10,000 cap on SALT deductions has been a point of contention,” Sherry said. “As a high earner in Arizona, I pay significant state and local taxes. Any changes to this cap could have an impact on my federal tax bill.”
Sherry also mentioned that while some Democrats have pushed for raising or eliminating the SALT deduction cap, which could benefit her, she’s unsure of Harris’s stance on this issue.
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. You can find more coverage of this topic on GOBankingRates.com.
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