US Election 2024: Overview of benefits and compensation proposals

The 2024 elections hold significant implications for benefits, workforce and tax policy during the 2025 – 2026 legislative term. Both political parties and presidential candidates have issued proposals that address important benefits, tax and compensation policies. Additional proposals could emerge as the November elections approach. The debate over the 2025 sunset of the Tax Cuts and Jobs Act of 2017 and other expiring tax provisions could also affect tax policy — including the tax treatment of healthcare, retirement and other benefits.

The summaries provided below of the policy proposals and information on potential legislative discussions in 2025 and 2026 may change as the campaigns continue. WTW will continue to monitor and issue updates on the latest activity.

Party platforms and other campaign proposals

Policies under discussion in the campaign include proposals from the party platforms and proposals put forth by the presidential candidates. Party platforms and campaign proposals usually require legislative authorization or other enabling action in order to take effect; therefore, the outcome of House and Senate elections will help determine policy changes after the November elections.

Both party platforms provide broad priorities and proposals but offer few details. Former President Donald Trump linked the Republican platform from his campaign website as his campaign platform. Both candidates have also offered other policy proposals that are not included in the party platforms.

Figure 1. U.S. election 2024 proposals

Overview of party platforms and campaign proposals on benefits and pay issues
	Republican platform and Trump/Vance campaign proposals	Democratic platform and Harris/Walz campaign proposals
Healthcare
Healthcare and coverage	Increase transparency, promote choice and expand access to more affordable alternatives. Support increased focus on chronic disease prevention and management, long-term care and benefit flexibility. Expand access to primary care. Mandate coverage of in vitro fertilization (IVF) treatments in private and governmental health plans.	Permanently extend the Affordable Care Act (ACA) premium tax credit expansions enacted by the American Rescue Plan Act and extended by the Inflation Reduction Act (IRA). Apply the surprise billing requirements in the No Surprises Act to ground ambulance services.
Prescription drugs	Support access to more affordable prescription drug options.	Expand the number of drugs subject to price negotiation and inflation rebates under the IRA. Extend certain Medicare provisions enacted by the IRA to private plans, such as the $35 cap on cost-sharing for insulin, the $2,000 out-of-pocket limit for prescription drugs and the inflation rebates. Apply $2 copayments for certain generic drugs for Medicare beneficiaries. Require greater transparency from pharmacy benefit managers (PBMs).
Other proposals		Ensure full mental health parity, including enforcement of the Mental Health Parity and Addiction Equity Act and expanding parity requirements to Medicare. Ensure and restore reproductive rights, including codifying Roe v. Wade and protecting access to contraception and IVF. Expand traditional Medicare to include dental, vision and hearing services. Work with states to cancel medical debt.
Retirement
	Both party platforms say that they will protect and strengthen Social Security.
	Eliminate income tax on Social Security benefits.	"Stop billionaires from exploiting retirement tax incentives that are supposed to help middle class families save."
Compensation
Executive compensation deduction limit		Prohibit employers from deducting executive compensation that exceeds $1 million.
Wage discrimination		Support the Paycheck Fairness Act, which would limit the legal defenses available to an employer in cases involving wage discrimination based on sex and make other changes.
Minimum wage		Increase the federal minimum wage to $15 per hour.
Paid leave
Paid family leave		Establish a national program that would provide 12 weeks of paid family leave that could be used to care for a new child, to care for a serious illness, or in cases of domestic abuse or military deployment.
Tax reform
Individual taxes	Permanently extend the provisions of the 2017 tax reform law. Eliminate taxes on tips for restaurant and hospitality workers.	Protect those earning less than $400,000 from tax increases. Establish a 25% minimum tax on billionaires. Impose a 28% capital gains rate for taxpayers with income over $1 million. Eliminate the “stepped-up” basis rule to avoid taxes on capital assets at death. Close the carried interest loophole. Restore expansions of the child tax credit and the earned income tax credit and provide $6,000 in total tax relief for families during first year of a child’s life. Impose higher payroll taxes on higher-income workers.
Corporate taxes	Reduce the corporate tax rate to 15%	Increase the corporate tax rate to 28%. Increase the tax on foreign earnings to 21%. Increase the tax on stock buybacks to 4%.
Other proposals	“Pursue additional Tax Cuts.”
Other proposals
Student debt	Support the establishment of “additional, drastically more affordable alternatives to a traditional 4-year” degree. “Drive down Tuition costs.”	Provide free trade school and community college.
Nondiscrimination		Support the Equality Act, which prohibits sex-based discrimination in employment, housing, public accommodation and other areas. Enforce the Americans with Disabilities Act, section 504 of the Rehabilitation Act and other nondiscrimination laws.
Labor organizing		Support the Protecting the Right to Organize Act.

Tax reform will be under discussion in 2025

Regardless of the election outcomes, tax reform will be a central issue during the 2025 legislative session. Significant provisions of the 2017 Tax Cuts and Jobs Act are scheduled to sunset on December 31, 2025. Other provisions that were enacted (or extended) after the 2017 Tax Cuts and Jobs Act also are scheduled to expire at the end of 2025, including employer-provided student loan repayments under Internal Revenue Code section 127, the tax credit for employer-provided paid family and medical leave, and enhanced ACA premium tax credits.

Lawmakers have begun preparing for a tax reform debate in 2025, but the specific provisions, as well as the process and prospects, for tax legislation in 2025 will depend on the outcome of the 2024 presidential and congressional elections. For example, if one party wins the White House, House and Senate, Congress may use the budget reconciliation process. Budget reconciliation would allow Congress to pass tax legislation with a simple majority in the Senate (rather than the 60-vote majority often needed to ensure final approval), but it also carries strict procedures that sometimes limit the provisions that may be included.

Benefit-related provisions could get attention during tax reform discussions. The employer community has begun efforts to prevent changes that could have adverse implications for employer-provided benefit and compensation programs.

Regulatory challenges and continuity

The Biden administration continues to advance its regulatory agenda. If former President Donald Trump is elected, several actions could affect the status and implementation of recently issued regulations and regulations that the administration releases before the end of the year:

Congressional Review Act (CRA): The CRA allows Congress to disapprove regulations. Congress considers resolutions of disapproval under the CRA using special, expedited procedures that prohibit Senate filibusters. Resolutions of disapproval must be signed by the president, so this process is most successful when a new administration takes office. If former President Trump is elected and Republicans hold majorities in the House and Senate, some regulations issued in 2024 could be subject to disapproval under the CRA when the new Congress and new administration take office in 2025.
Regulatory freeze: New administrations typically impose a regulatory freeze. Regulations that have not yet been published in the Federal Register, and regulations that have been published but have not yet taken effect, are often placed on hold so they can be reviewed by the new administration. Sometimes, regulations subject to the freeze are withdrawn. Such a freeze is likely if former President Trump is elected.

Legislative activity still possible for 2024

The current Congress continues through the end of 2024. Lawmakers returned from their August recess on September 9. Among other issues, Congress will have to provide government funding for fiscal year 2025, which begins on October 1. It is not yet clear whether Congress will enact a longer-term funding resolution or a shorter-term resolution that will require lawmakers to address funding again before the new Congress takes office in January 2025.

Congress is also scheduled to return to session after the elections. Several benefit-related items, including technical corrections to the SECURE 2.0 retirement security legislation, PBM reform, extension of the telehealth safe harbor for high-deductible health plans and other provisions may be under discussion during the post-election session. The specific legislation that will be discussed, and the outlook for action during this “lame duck” session, will be determined partly by the election outcomes.

Election Day is November 5. Those elected on November 5 will take office in January 2025.

Authors

Ann Marie Breheny

Senior Legislative Advisor

email Email phone +1 703 258 7420

Anu Gogna

Senior Regulatory Advisor, Health and Benefits

email Email phone +1 973 290 2599

William “Bill” Kalten

Senior Director, Retirement and Executive Compensation

email Email phone +1 203 326 4625

Steve Seelig

Senior Director, Executive Compensation

email Email phone +1 703 258 7623