On this episode of Adam Talks, tax attorney and IRA Financial’s founder, Adam Bergman, Esq., asks the question, with President Biden stepping down from running for re-election, what would a Kamala Harris presidency mean for your IRA and other retirement-related issues?
Kamala Harris & Your IRA
This episode discusses the potential impact of a Kamala Harris presidency on individual retirement accounts (IRAs) and broader tax policies. The host of Adam Talks, Adam Bergman, notes that following President Biden’s announcement that he would not seek re-election in 2024, Harris is expected to step in, backed by significant campaign funds. The discussion focuses on her support for labor unions, pension plans, and Social Security, suggesting that her policies would likely continue many of Biden’s tax and retirement initiatives.
Harris has shown strong support for pension plans, co-sponsoring the Butch Lewis Act to assist struggling pension funds through emergency loans. She has also been a vocal advocate for Social Security, co-sponsoring the Social Security Expansion Act, which aims to increase benefits and adjust cost-of-living calculations. These initiatives align with the Biden administration’s focus on supporting retirement security and labor unions.
On tax policies, Harris is expected to pursue higher taxes on the wealthy and corporations, similar to Biden’s proposals. This includes raising payroll and Social Security taxes on individuals earning over $250,000, which is lower than Biden’s threshold of $400,000. Additionally, she supports increasing the corporate tax rate and imposing higher taxes on capital gains and large estates, aiming to fund social programs like Medicare for All.
The podcast also touches on Harris’s previous proposals, such as the Lift for the Middle Class Act, which would provide refundable tax credits to low- and middle-income households. Bergman suggests that such credits could be more beneficial if directed into tax-deferred accounts like Roth IRAs. Harris’s progressive tax stance is expected to support funding for expanded social programs and public healthcare, though the specifics of her policies remain to be fully detailed.
Bergman emphasizes that while Harris’s policies may lean more left than Biden’s, both administrations would likely support the U.S. retirement system. He notes that the focus on taxing the ultra-wealthy and large IRAs is more symbolic, affecting a small number of people but resonating with progressive voters. Despite potential tax increases, the U.S. retirement system is expected to remain strong and bipartisan.
In conclusion, Bergman provides an overview of how a Kamala Harris presidency might influence tax and retirement policies, suggesting continuity with Biden’s agenda but with a more progressive tilt. Bergman encourages listeners to stay informed and exercise their right to vote, emphasizing the importance of participating in the democratic process to shape the future of the country.
