A Closer Look at Kamala Harris and Donald Trump's Economic

A Tale Of Two Paths

Topic: Politics

by MPeriod

Posted 3 months ago

• Lower Taxes: Trump’s economic strategy centers on lowering taxes to stimulate growth. He plans to extend the tax cuts he introduced in 2017 and cut taxes further, particularly for middle-class Americans. He claims these policies will result in bigger paychecks, more jobs, and stronger economic growth. Trump also opposes increasing taxes on high-income earners and corporations, believing that lower corporate taxes will lead to more investments and job creation.
• Opposition to Wealth and Capital Gains Taxes: Trump has been clear in his opposition to raising taxes on the wealthiest Americans or implementing a wealth tax, which he argues would stifle innovation and economic growth.

• Tax Cuts for the Middle Class: Harris’s plan prioritizes cutting taxes for working- and middle-class families. She proposes restoring the Child Tax Credit and Earned Income Tax Credit, which would help millions of Americans keep more of their earnings. She also plans to expand the Child Tax Credit, providing up to $6,000 for families with newborns.
• Higher Taxes on Wealthy Americans and Corporations: Harris intends to roll back parts of Trump’s tax cuts for the wealthy and raise taxes on high-income earners. Her plan would also introduce a billionaire minimum tax, quadruple taxes on stock buybacks, and increase the capital gains tax from 20% to 28% for those earning over $1 million a year. Harris believes these tax changes will help fund social programs and reduce income inequality.

• Energy Production to Curb Inflation: Trump’s inflation-fighting strategy relies heavily on boosting U.S. energy production, particularly oil and gas, which he argues will lower fuel costs. He also plans to reduce government spending and remove regulations, enlisting Elon Musk to lead his deregulation efforts.
• Opposition to Government Spending: Trump believes that excessive government spending under Biden has contributed to inflation, and he vows to reduce federal expenditures.

• Targeted Measures to Lower Costs: Harris has focused on reducing the cost of everyday items, such as prescription drugs and healthcare. During her tenure as Vice President, the cost of insulin was capped at $35 for seniors, and she plans to extend this cap to all Americans. She also proposes cracking down on price gouging by corporations.
• Housing Costs: Harris has introduced a plan to build 3 million more homes to address the housing supply crisis, which she believes will lower rent and housing prices. She also plans to offer $25,000 to first-time homebuyers to make homeownership more accessible.

• Tariffs and Protectionism: Trump’s trade policy focuses on reshoring American manufacturing and reducing dependency on foreign supply chains, particularly with China. He plans to impose tariffs of 10-20% on all imports, and up to 60% on Chinese goods, which could reignite trade wars. While Trump argues this will protect U.S. jobs, many economists warn that these tariffs could increase inflation and slow economic growth.
• Trade Deals: During his first term, Trump canceled the Trans-Pacific Partnership (TPP), replaced NAFTA with the USMCA, and imposed tariffs on Chinese goods to reduce the trade deficit.

• Continued Focus on Trade: Harris has aligned with the Biden administration on maintaining a balanced trade policy that reduces dependency on foreign suppliers. She opposed the proposed $15 billion takeover of U.S. Steel by Japan’s Nippon Steel, reflecting her commitment to protecting American industries.
• Less Aggressive Tariffs: While Harris supports trade policies aimed at bringing manufacturing back to the U.S., her approach to tariffs is less aggressive than Trump’s. Her administration has supported selective tariffs on imports but has not advocated for sweeping increases like Trump.

• Focus on Deregulation: Trump's economic plan emphasizes cutting regulations that he argues hinder small businesses. He plans to remove barriers to entry for entrepreneurs and reduce the tax burden on small business owners, believing this will stimulate job growth and innovation.
• Opportunity Zones: During his presidency, Trump created nearly 9,000 Opportunity Zones to incentivize investment in underserved communities, which he claims helped revitalize neglected areas.

• Access to Capital and Support for Minority-Owned Businesses: Harris has focused on increasing access to capital for small business owners, particularly in historically underserved communities. She helped drive record new business applications during the Biden-Harris administration, tripling lending to Black-owned businesses and expanding federal contracts for minority-owned businesses. Harris also plans to expand the startup expense tax deduction to support new businesses and streamline government processes that hinder small business growth.

• Reduce Government Spending: Trump’s plan to reduce the deficit involves cutting government spending and reducing the size of federal programs. Despite these intentions, analysts estimate that Trump’s policies, including tax cuts and increased tariffs, could add $5.8 trillion to the deficit over the next decade.
• Deficit Concerns: Although Trump claims his policies will spur economic growth, many economists argue that large-scale tax cuts and protectionist trade policies will likely increase the national debt.

• Investments in Social Programs: Harris’s plan involves significant investments in healthcare, housing, and education, which would increase government spending. However, her plan to raise taxes on wealthy individuals and corporations is aimed at offsetting these costs. Analysts estimate that Harris’s policies would add $1.2 trillion to the deficit over the next decade, significantly less than Trump’s.
• Deficit Reduction: Harris argues that making the tax system fairer and prioritizing investments in the middle class will lead to long-term economic growth, which would help reduce the deficit over time.

Conclusion: Two Divergent Economic Paths