Alright, in the last episode, I mentioned I wasn't going to get into politics,
but I was wrong. Like, we are just a few days away from the
election, and there's so many tax proposals just being thrown out there
by both candidates. And some,
I feel like they don't even know what they're saying. And they're just throwing
it out there. But some are very important.
Like, some, they've put a lot of thought and effort into it,
and it's a very important part of what they're running on,
but also us as taxpayers. Depending on the type of taxpayer that you are,
uhm, and actually,
I'll get, actually later, here in the next couple of weeks, I'm going to
get into, like, different tax personas. But it really depends on the type
of taxpayer you are, uhm, each of their policies,
some of their policies could help only certain types of taxpayers,
and some could actually harm certain types of taxpayers.
So, like, you know, like, the big,
just kind of rich versus poor, like,
oh, the tax cuts for the wealthy, or the tax cuts for the big
corporations, there's a little bit of that. Like,
there's, there's some tax cuts that might only benefit more wealthy,
but there's tax cuts that only, uh, benefit people that are,
you know, that are not as wealthy or just people that are poor or
have low income. And so we're going to compare some of those.
So I, this is the first of a 10 part series and they're all
going to be pretty short and I, I don't want to just do one
long podcast. You, you know what my content or what the style of the
format is. And I just like them short and sweet and I don't like
to go into too many details. I I just want to get in and
out and get it over with for you because,
yeah, because you don't want to listen to all sorts of stuff about taxes,
but at the same time, it's very important things because like taxes,
right? Taxes are your biggest expense. That's why we're here.
That's why you're probably listening to this podcast.
You don't want to pay more in taxes. If it is your biggest expense,
who you vote for could impact how much you're paying.
It could impact whether or not you're going to start a business or buy
a rental property. There's a ton of implications.
This is one of ten. These are the first of the ten.
This first one is about child tax credits and the earned-income
credit. I'm going to compare the two different policy proposals that they've had related
to this. And, with all of these,
I'm also going to compare it to the current way that it is now.
The child tax credit is a $2,000 per child credit up
to the kids, and it's about,
and it changes, but up to they turn about 15,
and then it goes to a $500 credit.
And if you're claiming older kids, and, like,
even parents and stuff, it's still a $500 credit,
but remember it's a $2,000 credit per kid that you're claiming.
That's right now. So under the Harris proposal,
it's a $3,600 credit if they're 6 and under,
and then a $3,000 credit if they're 6 to
17 years old. So it's up from $2,000 up to $3,600 until
they turn 6 and $3,000 until they turn 17.
So under the Trump proposal and both of these,
and like, these are all just proposals. There's,
there's in the final tweaks, there's going to be limitations and stuff.
But the Trump proposal is that it's $5,000 for every kid.
And we would assume that it's from when they're born up until,
up until they're 17 probably is would be the age cut off.
And so from there, I would say Trump wins.
You'd be better off under Trump's plan. And they're,
I have seen some articles where they're saying, oh,
like Trump is after, or Trump is giving tax credits and more credits to
the wealthy. Um, because this $5,000 per kid tax credit,
like not a lot of people. If you've got five kids,
like I do, that's $25,000 of taxes.
Not a lot of people are gonna have $25,000 of taxes.
Other than people that have a lot of income, they're wealthy. And so it
is benefiting the wealthy, but it's also benefiting the,
the people that are not as wealthy or don't have as high of income.
So just watch for that as you're seeing news articles and stuff.
It's like, they, of course, they're, they're gonna be pretty deceiving.
So that's, that's the child tax credit part.
The other part, oh, the earned income credit. Uh,
I didn't see anything for, with Trump's earned income credit.
Um. So I,
I won't even bring up what he's proposed, but Harris has proposed that the
earned income credit is allowed for single or tripled for
single people and that the age limit goes up for that earned income credit.
And that one's just a, that, that's a free deduction.
Both. I'm talking about these credits at the same. Cause child tax credits,
it's money that comes out of thin air. It's not money that you've prepaid
and you're getting it back. It's money that the government is giving you if
your income falls within a certain threshold. So she's a tripling that
like, or tripling that. So instead of a $500 credit,
it's up to like a $1,500 credit. Which is,
which is good. If your income is in that, that low threshold,
I would say from like, it's about $10,000 of income up to like $30,000
or $40,000 of income. It would help people in that range specifically.
Okay, that's it. That's it for today about the child tax credits.
Remember, currently it's 2,000 under Harris's plan.
It's 3,000 to 3,600 under Trump's plan.
It's $5,000 per kid. So that's,
that's the, the tax. Yeah,
policy of the day for the 2024 presidential election.
