Economic Visions for 2024 and Beyond: Trump vs. Harris

As Americans prepare to vote and put an end to this riveting election cycle, economic policy is at the forefront of many people’s minds. The majority of the American electorate (about 52%) believe monetary policy to be so “extremely important” that it plays a significant role in who they vote for in the upcoming election. The two major candidates — Donald Trump and Kamala Harris — offer different approaches to stimulating the U.S. economy. Understanding their plans is crucial, as one of these plans will shape the economic landscape for years to come. 

Trump’s economic strategy is centered around cutting taxes and bringing jobs back to the U.S. He aims to lower the corporate tax rate from 21% to 15%, especially for companies returning to domestic production. This is part of his “Build It in America” plan, which seeks to reduce reliance on foreign supply chains, particularly in sectors like pharmaceuticals. By making the U.S. a more competitive environment, Trump hopes to attract investments and boost job creation. Ultimately, his goal is to boost the stagnating American economy. 

One of former President Trump’s main objectives is to extend the expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA). The TCJA previously cut corporate taxes significantly, from 35% to 21%, and Trump’s current proposal would further reduce individual tax rates. Additionally, he plans on exempting income from tips, overtime pay and Social Security benefits from federal taxation. According to estimates from the Tax Foundation, the world’s leading nonpartisan tax policy research organization, Trump’s tax proposals would increase long-term GDP by 0.8%, wages by 0.8%, and create over half a million jobs. Additionally, Trump’s push to repeal green energy tax credits and impose tariffs on certain imports reflects his prioritization of traditional industries over renewable energy investments.

However, Trump’s tax cuts come with a cost. Higher tariffs on foreign goods could result in increased consumer prices. Additionally, the Penn-Wharton Budget Model estimates that his proposals could add $5.8 trillion to the national deficit over the next decade. Critics argue that while tax cuts may stimulate short-term growth, the rising deficit could undermine long-term economic stability.

Vice President Harris, in contrast, takes a more progressive approach, focusing on increasing taxes for corporations and expanding social benefits. Her plan raises the corporate tax rate from 21% to 28%, reversing some of the cuts made under President Trump. She also proposes an expanded Child Tax Credit, offering $3,600 for children under five and $3,000 for those aged five to 17. This increase in direct financial support aims to alleviate some of the financial burden of raising children, especially for lower and middle-income families.

Harris also supports programs that assist first-time homebuyers, with proposals for offering $25,000 in down payment support for qualified buyers. While Harris’ plan intends to address inequality and provide financial relief to struggling families, many question its feasibility. According to estimates from the Penn-Wharton Budget Model, her proposals could add $1.2 trillion to the national deficit by 2034. Furthermore, the ability of the president to enact such policies largely depends on Congressional approval, which may limit Harris’ ability to implement them fully.

Harris’ critics argue that increasing corporate taxes could stifle investment and job creation. A higher corporate tax rate could discourage businesses from expanding or investing domestically, potentially slowing economic growth.

This election forces voters to choose between competing economic blueprints, each promising to shape the future of the American economy. Trump’s tax cuts aim to boost growth and bring jobs back to the U.S., but they risk increasing the deficit and tariffs driving up consumer costs. Harris’ focus on expanding social support aims to reduce inequality, but her corporate tax increases could hurt businesses’ growth potential. As the economy takes center stage in this election, the impact of either candidate’s policies will likely shape America’s economic future for generations.

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Photo Caption: Money on the American Flag

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