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Potential VP Picks Offer Range of Tax Policy Experience

Posted on July 29, 2024

Presumptive Democratic presidential nominee Kamala Harris’s most plausible choices for a running mate bring varying degrees of tax policy expertise.

As speculation mounts over who Harris will pick as her running mate, talk in Washington has focused on a slew of white men from toss-up states and traditional Republican strongholds.

Each candidate, and others flying under the radar, offers a unique background on taxes that could influence the policy direction of a potential Harris administration.

Pete Buttigieg

Transportation Secretary Pete Buttigieg appears to be most aligned with Harris on tax policy priorities despite lacking federal experience with nontransportation tax matters.

Buttigieg, who was mayor of South Bend, Indiana, and serves as transportation secretary in President Biden’s cabinet, held similar tax policy positions to Harris when they both ran for the 2020 Democratic presidential nomination.

Both called for the reversion of the corporate tax rate to 35 percent and argued for tax credits to spur renewable energy development, the latter of which was realized through the Inflation Reduction Act.

Buttigieg opposed previous calls by some Democrats for the revocation of tax-exempt status for nonprofits that don’t recognize same-sex marriages, with Buttigieg saying it could “deepen the divisions” in the country.

As part of his 2020 presidential campaign, Buttigieg released 12 years of tax returns, stretching back to his days as a consultant at McKinsey & Co.

Buttigieg’s annual earnings peaked in 2009, his last year with the firm, when he reported taxable income of $136,129 and paid $30,363 in federal income taxes.

Josh Shapiro

Besides Buttigieg, three Democratic governors have expressed opinions in line with Harris’s tax policy priorities but have been prevented from acting on them by divided or Republican-controlled state legislatures.

Pennsylvania Gov. Josh Shapiro proposed giving tax credits to nurses, police officers, and teachers. A bill to enact such a plan passed Pennsylvania’s Democratic-controlled House but stalled in the GOP-controlled Senate.

Shapiro signed into law Republican-sponsored legislation that abolished the alternative fuel tax on electric vehicles, which was lightly enforced, and replaced it with an annual flat fee. The move angered EV advocates.

In line with the Biden administration’s efforts to curb economic activity in Russia after its invasion of Ukraine, Shapiro banned companies headquartered in Russia and Belarus from claiming state tax credits.

Like Harris, Shapiro has advocated for the legalization and taxation of recreational marijuana.

While Shapiro has released financial disclosure forms both as governor and during his time as Pennsylvania’s attorney general, he has yet to release any tax returns.

Roy Cooper

North Carolina Gov. Roy Cooper, contending with a Republican-controlled legislature, has had difficulty advancing conventional Democratic tax policies.

While Cooper worked with Republicans to legalize sports betting and enact subsidies for online education, he signed into law a budget that reduced individual state income taxes and phased out corporate taxes.

Cooper has proposed a reduction in state income tax for lower-income households and tax cuts for small businesses.

Cooper also has called for any student loan forgiveness to be tax exempt.

Like Shapiro, Cooper has filed forms that disclose certain economic interests but has not released any tax returns.

Andy Beshear

Kentucky Gov. Andy Beshear has navigated a GOP-controlled legislature that has enough votes to override his veto authority.

Beshear has reached across the aisle on several tax changes.

Beshear signed several Republican-sponsored bills that were opposed by Democrats, including legislation that reduced the state income tax and offered tax breaks for cryptocurrency mining.

Beshear vetoed legislation that would have offered tax incentives to data centers and remote workers and reinstated the Kentucky Board of Tax Appeals after it was abolished by his Republican predecessor.

Beshear, like Shapiro, has advocated for the legalization and taxation of recreational marijuana.

Beshear has released his tax returns annually since becoming Kentucky attorney general in 2016 and has yet to release his 2023 returns.

According to his 2022 filing, Beshear and his wife reported taxable income of $168,194 and paid $23,051 in federal income taxes. The couple also claimed $4,000 in child tax credits.

Mark Kelly

Arizona Sen. Mark Kelly has not played a leading role in tax legislation, but there are signs of his alignment with Harris on policy.

Kelly has joined a group of other Democrats in pursuing legislation that would allow cannabis businesses operating in states where marijuana sales are legal to access banking services.

Kelly also introduced a bill that would enact Biden’s proposal to institute a national gas tax holiday in a bid to lower gasoline prices.

While Kelly released a financial disclosure form during his run for the Senate in 2020, he has not released any tax returns.

Cory Booker

A scholar who studies vice presidents has pondered whether Harris may choose New Jersey Sen. Cory A. Booker.

Aaron Mannes of the University of Maryland, College Park, speculates that Booker would represent a close alignment with Harris.

In addition to working with Harris during her time in the Senate on marijuana reform, Booker has been a vocal proponent of several Biden-Harris administration policy positions, such as permanently expanding the child tax credit and taxing capital gains as income.

He also has pursued reform on Opportunity Zones, expanding the earned income tax credit, and raising estate taxes in order to pay for more affordable housing.

Booker released 10 years of tax returns during his presidential run in 2020, which revealed he had earned about $3 million in speaking fees and royalties over the decade.

Booker’s tax returns made him stand out among Democratic presidential candidates that year by revealing his level of charitable contributions, which, averaging 11 percent of his income during the 10-year period, was substantially higher than that of other challengers.

Christopher Jardine contributed to this article.

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