Kamala Harris’ tax records reveal ‘fairly basic’ approach, experts say
U.S. Vice President Kamala Harris and second gentleman Douglas Emhoff descend from Air Force Two in Wilmington, DE, U.S., July 22, 2024.
Erin Schaff | Via Reuters
Vice President Kamala Harris‘ personal financial records are under fresh scrutiny now that she is running for the highest office in the United States.
Experts say recent tax filings show she and her husband, Second Gentleman Douglas Emhoff, have largely kept their finances simple during her years as vice president.
“Her returns are fairly basic,” said Craig Hausz, a certified financial planner and certified public accountant, who is CEO and managing partner at CMH Advisors in Dallas.
Yet that approach may have cost the couple as they left unclaimed tax savings through additional deductions, as well as other missed financial strategies.
The financial disclosures may raise few red flags in her career in public office. Unlike most other Americans, Harris and Emhoff can afford to avoid to miss those savings.
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“Even if she doesn’t win president, as an ex vice president, she’ll always have lots of money coming in,” said Carolyn McClanahan, a CFP and founder of Life Planning Partners in Jacksonville, Florida.
“They will never lack for money, so they don’t really need to worry too much about how [tax] efficient they are, or how much they save,” said McClanahan, who is also a member of the CNBC FA Council.
Harris’ office did not respond to a request for comment by press time.
The couple’s recent tax filings mirror millions of other Americans’, according to Boston-based CFP and enrolled agent Catherine Valega, founder of Green Bee Advisory.
“They took a conservative approach and that’s the right thing to do,” Valega said. “You don’t see them trying to do anything super creative here to reduce their taxes.”
What tax savings Harris may have missed
Overall, Harris’ return could have been more aggressive to reduce tax liability, experts say.
“Somebody in her position could probably take more deductions,” particularly against her book income, Hausz explained.
To that point, Harris reported $7,272 in gross book income in 2023 with a single business deduction of $1,273 for “commissions and fees.” By comparison, her 2021 book earnings were $452,664 with the same deduction worth $65,951.
“If I were advising her, I would say ‘let’s keep this as uncomplicated as possible, so there’s no talking points,'” Hausz said. “She’s done a very good job of that.”
‘A little too conservative’ with cash
Another possible missed opportunity is Harris’ cash allocations, with $50,603 in bank account interest reported for 2023, up from $6,054 in 2022, experts say.
Bank account yields have been higher after a series of interest rate hikes from the Federal Reserve. But Harris’…
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