Just days into their run for office, Vice President Kamala Harris and Minnesota Gov. Tim Walz have not yet released any detailed policy proposals, but their track records give us a sense of the kinds of policies they might pursue in office.
Harris doesn’t have much of a distinct fiscal record to run on, though her campaign told The New York Times on Friday that she will stick close to the policies proposed by President Joe Biden in his latest budget, which called for some $3 trillion in net deficit reduction over the next decade paid for by higher taxes on corporations and top earners.
The Tax Policy Center’s Nikhita Airi wrote this week that some of the key questions for a Harris fiscal platform include how she proposes to raise revenues, what she plans to do about the expiring 2017 tax cuts, her approach to tariffs and her support for enhanced funding for the IRS.
Walz, by contrast, has been a governor for nearly six years and has a fiscal record that includes increased tax credits as well as tax hikes. Some highlights, as discussed by Richard C. Auxier of the Urban-Brookings Tax Policy Center:
* The largest child tax credit in the U.S.: Minnesota increased its child tax credit in 2021, raising it to $1,750 per child. Thanks to relatively broad eligibility rules, the fully refundable credit is available to a significant number of families in the state.
* Tax cuts for Social Security recipients: In 2023, Minnesota eliminated income taxes on Social Security benefits for single filers earning less than $78,000 and married filers earning less than $100,000 per year. The policy costs the state $250 million to $300 million per year, or about 1% of revenues.
* Tax increases for high-income households and corporations: A tax package Walz signed in 2023 provided a tax cut overall but included some tax increases. Among other things, the bill limited deductions for households earning more than $220,000 per year and created a new tax on capital gains. It also imposed a minimum tax on corporations operating in the state.
* A payroll tax to fund paid leave program: Walz created a payroll tax of 0.7% to fund a new family and medical paid leave program, the first in the Midwest.
* Pot tax: Marijuana sales will be legal in Minnesota starting in 2025, and Walz approved a 10% tax on sales of legal weed.