US Presidential Election: A Tale of Two Economic Policies

The highly anticipated US presidential election between Donald Trump and Kamala Harris has garnered significant attention worldwide. A crucial aspect of their campaigns is their economic policies, which have sparked intense debate and controversy.

Trump’s Economic Policies Under Scrutiny

The FBI is currently investigating an alleged attempted assassination of former President Donald Trump, which occurred on September 15 at the Trump International Golf Course in West Palm Beach. Meanwhile, Trump’s economic policies have been a subject of discussion, with many experts weighing in on their potential impact.

Kamala Harris’s Plan for Economic Growth

According to a Reuters poll on September 12, Kamala Harris has a 47% support rate, while Donald Trump has a 42% support rate. During the debate on September 10, Harris outlined her plan to help American families struggling with the economy and cost of living. Her plan involves providing cash subsidies to first-time home buyers, small and medium-sized enterprises (SMEs), and promoting economic growth by increasing the corporate income tax from 21% to 28%.

Trump’s Tax Policies: A Different Approach

Donald Trump’s economic policies, on the other hand, focus on imposing steep tariffs on imports, particularly from China, and extending the tax cuts from the Tax Cuts and Jobs Act (TCJA) of 2017. Trump’s plan also includes reducing the corporate income tax from 21% to 20% or 15% for domestic production.

The Impact of Trump’s Economic Policies

While Harris’s plan aims to provide equal support to struggling Americans and SMEs, Trump’s policies aim to boost economic growth by cutting taxes and abolishing regulations that bind businesses. However, many experts believe that extending the TCJA tax cuts will primarily benefit the super-rich, while high tariffs on imported goods will lead to higher inflation and be borne by American consumers.

The Potential Consequences of Trump’s Policies

According to the US Federal Reserve, the richest 1% of Americans will own $44,000 billion, equivalent to 30% of total assets of US households, by the end of 2023. Meanwhile, the poverty rate in the US is increasing, possibly due to the impact of the Covid pandemic. Critics argue that Trump’s policies will make the rich richer and the poor poorer.

Expert Opinions and Concerns

Many experts, including billionaire John Paulson, have expressed concerns about the potential consequences of Harris’s proposed tax plan, which could lead to a financial market collapse and a US economic recession. Others argue that Harris’s policy of providing large-scale monetary support to stimulate economic growth will lead to inflation and not attract large flows of money to the US.

A Changing US Tax Policy

Regardless of who wins the November election, one thing is certain: US tax policy will change dramatically in 2025. Most of the tax cuts signed into law by Trump in 2017 are set to expire in early 2025. If Trump wins, the tax cuts will be extended and possibly cut further. If Harris wins, she will take a new approach.