Harris and Trump Plans on the Economy Compared
Harris wants to help build an “opportunity economy” targeted squarely at helping the middle class, at helping families, and at assisting small business entrepreneurs forming new businesses. https://time.com/7023378/opportunity-economy-investors/
For example, Harris is proposing tax credits and reduced federal, state and local red tape to work with developers to build 3 million new units of affordable housing. She seeks $6,000 tax credits for families with new babies, and a $3,600 tax credit for each child in the family. She seeks $25,000 to help new home buyers buy their first home. She seeks $50,000 tax deductions for those who start new small businesses. https://kamalaharris.com/wp-content/uploads/2024/09/Policy_Book_Economic-Opportunity.pdf
Trump seeks a neo-isolationist economy in which imports are taxed very heavily and the very rich very lightly. https://time.com/7095898/donald-trump-economy-plan-2024/
Trump suggests high tariffs -- 20% on all imports and 60% on all Chinese imports. This operates like a national sales tax on all imported goods and is highly inflationary say the economists. https://www.pbs.org/newshour/economy/trump-favors-huge-new-tariffs-how-do-they-work He proposes to round up and deport over 11 million undocumented. https://apnews.com/article/trump-mass-deportations-immigration-844f3050ba99552b900ed9f3a1dec22d He contends that the revenues from tariffs will be sufficient to solve a variety of social needs, such as affordable childcare for working families and tax cuts for the wealthy. https://theweek.com/politics/trump-tax-cuts-tariffs He promises that deporting 20 million immigrants would make housing more affordable, while the builders and developers say it would destroy their workforces and make new homes and apartments much more expensive. https://www.nbcnews.com/politics/2024-election/trump-immigration-deportations-home-building-costs-rcna172886
In 2025, the Trump tax cuts of 2017 for individuals expire. He wants to keep them all and add additional tax cuts for businesses (a proposed reduction in the corporate tax rates from 21% to 15%) and the wealthy. He also suggests eliminating taxes on tips, social security benefits and overtime pay. He would repeal the Biden tax cuts for solar panels, electric vehicles and the other transitions to green energy and green transportation. Harris by contrast would retain all the Trump tax cuts for those with incomes under $400,000 annually and add in her own proposals for the opportunity society. She would allow the Trump tax cuts for the top income earners to expire. The disparities in economic impacts between the two plans are striking; she cuts taxes dramatically for all but those with the highest incomes while he increases taxes for all but those with the highest incomes for whom he cuts taxes dramatically. https://itep.org/kamala-harris-donald-trump-tax-plans/
Twenty-three Nobel Prize winning economists strongly back the Harris plan. https://www.cnbc.com/2024/10/23/nobel-prize-winning-economists-donald-trump-agenda-endorse-harris.html and https://www.axios.com/2024/10/23/harris-trump-nobel-prize-economists Goldman Sachs economists assessed that Harris’ plans would be better for the economy. https://ny1.com/nyc/all-boroughs/politics/2024/09/04/goldman-saches-u-s--economy-kamala-harris-donald-trump# and https://www.fool.com/investing/2024/09/07/will-kamala-harris-or-donald-trump-be-better-for-t/
References:
https://theconversation.com/how-harris-and-trumps-economic-pledges-stack-up-241644