The Pour Over Today - Bonus Episode: 2024 Election Topics - Taxes

Episode Date: October 22, 2024

In a special episode of The Pour Over Today, we’re explaining the debate about taxes, including where VP Harris and former President Trump stand. This is the twelfth episode of our Election Collection, designed to help us grow in understanding and compassion on key 2024 election topics.  Please support our TPO sponsors! Cru: give.cru.org/tpo Upside: https://links.thepourover.org/Upside The Bible Study: https://links.thepourover.org/TheBibleStudy Politics for People Who Hate Politics: https://links.thepourover.org/PoliticsForPeopleWhoHatePolitics Keola Fit: https://links.thepourover.org/KeolaFit_Pod Compelled Podcast: https://links.thepourover.org/Compelled Dwell Differently: https://links.thepourover.org/DwellDifferently Nothing Left Unsaid Podcast: https://linktr.ee/tgnlu CCCU: https://www.mycccu.com/tpobonus Courage for Life Study Bibles: links.thepourover.org/CFL_Podcast_0901 Grace Bible for Kids: https://links.thepourover.org/GraceBibleforKids The Daily Walk Bible: https://links.thepourover.org/DailyWalk

In a special episode of The Poor Over Today, we're explaining the debate about taxes, including where VP Harris and former President Trump stand. This is the 12th episode of our election collection, designed to help us grow in understanding and compassion on key 2024 election topics. Last year, Americans paid roughly $6.5 trillion in taxes across federal, state, and local levels of government. $4.4 trillion of that revenue went to the federal government. Nearly half of Uncle Sam's federal fundraising comes from personal income taxes, with just over a third coming from payroll taxes.

On the state level, most money comes from income taxes, though Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don't have a state income tax. Sales tax is the second largest source of state revenue. On the local level, most government revenue comes from property taxes, 72% in 2024. Uncle Sam spends about $2 trillion more annually than he receives in revenue. This difference is the much-discussed deficit. Congress is responsible for raising and lowering federal taxes and deciding how much the federal government spends, with disagreements leading to gridlock and potential government shutdown responsible for raising and lowering federal taxes and deciding how much the federal government

spends, with disagreements leading to gridlock and potential government shutdown on what feels like a regular basis. Here are some key terms that come up in the debate about taxes. Payroll taxes. For most people, this is a 15.3% tax shared by employers, 7.65%, and employees, 7.65%, taken out of each paycheck. People who are self-employed are responsible for the entire 15.3%, often called the self-employment tax. Wages above $168,600 are exempt from taxes to fund Social Security, raises to $174,900 in 2025.

Income Taxes An income-based tax rate paid by employees to fund local public services like transportation, education, and defense. Most people pay both federal and state income tax, though nine states do not have a state income tax. Sales Taxes A tax on the sale of goods and services at a percentage of the purchase price, determined state by state. Alaska, Delaware, Montana, New Hampshire, and Oregon skip statewide sales tax. California has the highest state sales tax rate.

Property Taxes is state sales tax rate. Property taxes. A tax on immovable property like land and buildings and on movable, tangible personal property like cars and equipment. Property tax rates vary state by state, as does the property tax base, what is and isn't taxable. Tariffs. A tax imposed by one country on goods or services imported from another country. Supporters say tariffs raise revenue, protect domestic industries, and protect national interests. Critics say they drive up prices for consumers and cause trade wars. Child tax credit.

Reduces the tax bill for low and moderate income parents by up to $2,000 per child. Capital gains tax. Taxes owed on the profit after the sale of an asset, like real estate or stocks. Short-term capital gains tax are paid at the same rate as ordinary income. Long-term capital gains taxes for assets you've held for longer than one year are lower than the regular income tax rate.

Unrealized capital gains tax. An unrealized gain or loss is the change in the value of a stock, bond, or other asset that has not yet been sold. Some Democrats advocate for taxing unrealized gains on ultra high net worth individuals, $100 million and up. We'll be back with what Republicans and Democrats say after a quick break. We're not sure if getting 10,000 steps per day is still a trendy goal,

but taking a daily walk with God is still at the top of our list. That's why we're recommending the Daily Walk Bible. The Daily Walk Bible takes you on a guided path through scripture. Each of its 366 daily Bible readings is enhanced with a short overview that emphasizes different aspects of God's story and a devotional to immerse you in what you have just experienced. Every seventh day, you'll take a rest stop, pausing to reflect, reconnect with what you have read, and open your heart to hear God's voice. Looking to go deeper? The Bible comes with access to the Filament Bible app.

Just download the app and scan the icon at the top of each Bible page for an in-depth exploration of the passage you are reading with notes, devotionals, videos, graphics, and more. Let the daily walk Bible be your guide as you explore Scripture throughout the year and discover more of who God is through His Word. Check it out in the link in our show notes. Republicans generally favor lower taxes, believing money is better spent and more impactful in the hands of private citizens. They argue that reducing taxes for individuals and companies will incentivize them to bring or keep money in the United States instead of lower-tax countries. That money can then be used to raise wages and innovate, boosting the entire economy.

Democrats generally favor higher taxes on wealthy individuals and corporations, advocating the increased tax revenue be used to fund more social programs. They emphasize that the economy is rigged to benefit the ultra-rich and support closing tax loopholes and instituting a minimum tax on billionaires to ensure they pay their fair share. They generally support maintaining and lowering taxes on the middle and lower classes. No matter your stance on tax policy, Christians are called to manage their own finances wisely and to live generously, giving to those in need. Pray for guidance in doing both, and reach out to your local church to see where help

is needed. Hebrews 13 and 16 says, Don't neglect to do what is good and to share, for God is pleased with such sacrifices. And now, candidate stances. Vice President Harris wants to raise taxes on big businesses and Americans making $400,000 or more annually, pushing President Biden's 2025 budget plan forward. She has promised not to raise taxes on families making less than $400,000,

saying the middle class will keep more of their income through child tax credits. She proposed $3,600 per child, with a bump to $6,000 for newborns. Harris has echoed Trump's proposal to exempt TIP income from taxation. Former President Trump has proposed trillions in tax cuts. Trump has promised to expand the tax cuts he enacted in 2017,

set to expire in 2025, and shave at least one percentage point off corporate taxes. He says the loss of revenue will be paid for by higher growth and tariffs on imports, a cornerstone of his economic policy. Trump believes 10 to 20% tariffs on foreign goods, up to 60% on Chinese goods, will incentivize American manufacturing and create jobs.

He proposes a child tax credit of $5,000 per child and exempting T tip income from taxation. That's all we have for today. Thanks for listening. If you're listening on the Apple Podcasts app, give us a five star rating and drop a review. If you're listening on Spotify, give us a follow and hit and drop a review. If you're listening on Spotify, give us a follow and hit the notification bell to never miss a new episode. We appreciate

your support and hope you have a great day. We'll be back tomorrow with the regular news. Hi, it's Kathleen from The Poor Over. Before today's episode is over, I wanted to pop in and tell you about a really cool Bible study. It's called The Bible Study. It's a guided walk through God's Word, all 66 books, and one hardcover aesthetic coffee table book. You can examine how the Bible relates to you in an easy to understand, interactive way. If you've been looking for your next Bible study, try the Bible study. Get your copy with the link in our show notes.