Harris and Trump: A Comparison of Economic Policy Proposals for the 2024 Election

As the 2024 presidential election approaches, Vice President Kamala Harris and former President Donald Trump have each presented distinct economic agendas. These proposals reflect their differing visions for addressing key issues such as corporate taxation, inflation, middle-class relief, and overall economic strategy. Below, we compare the major components of their economic plans.

I. CORPORATE TAXATION 

Kamala Harris’ Proposal:

Harris has proposed increasing the corporate tax rate from 21% to 28%. This increase is intended to generate additional federal revenue to fund various economic initiatives aimed at benefiting middle-class and working-class families. Her plan aligns with President Joe Biden’s earlier proposals but is lower than the 35% rate she advocated for during her 2020 presidential campaign. This move is also seen as a reversal of the corporate tax cuts implemented under Trump’s 2017 Tax Cuts and Jobs Act, which reduced the corporate tax rate to 21%.

Donald Trump’s Proposal:

In contrast, Trump is advocating for further reductions in the corporate tax rate, potentially lowering it to 15%. He argues that this reduction would stimulate economic growth and encourage businesses to invest and create jobs in the United States. Trump’s approach builds on his administration’s previous tax cuts and is designed to appeal to corporations and higher-income earners.

II. TAX POLICIES AFFECTING INDIVIDUALS

Federal Income Taxes on Tips:

Both Harris and Trump propose eliminating federal income taxes on tips, aiming to provide tax relief to service industry workers. However, Trump goes further by suggesting the elimination of federal payroll taxes on tips as well, which Harris has not endorsed.

III. TAXES ON SOCIAL SECURITY BENEFITS

Trump has pledged to eliminate taxes on Social Security benefits, primarily benefiting middle and upper-income seniors. While this move is popular among seniors, it poses a risk of depleting the Social Security and Medicare trust funds faster, potentially increasing the federal deficit.

IV. MIDDLE-CLASS RELIEF AND ENHANCED TAX CREDITS

Kamala Harris’ Proposal:

Harris focuses on enhancing middle-class tax credits. She plans to revive measures from the American Rescue Plan, including increasing the child tax credit, introducing a $6,000 child tax credit for families with newborns, restoring the enhanced earned income tax credit (EITC), and extending Affordable Care Act premium subsidies. Harris’ agenda aims to provide substantial relief to middle- and lower-income families, addressing the high costs of housing, healthcare, and childcare.

Donald Trump’s Proposal:

Trump has focused on extending the tax cuts from the 2017 Tax Cuts and Jobs Act, which are set to expire soon. He aims to maintain and possibly expand these tax cuts for all income levels, including businesses, which he believes will fuel economic growth.

V. ADDRESSING INFLATION AND HIGH COST OF LIVING

Kamala Harris’ Approach:

Harris has advocated for measures to control rising costs, including implementing a federal ban on price gouging to keep essential goods and services affordable. She has proposed expanding the $35 monthly cap on out-of-pocket insulin costs to all Americans and introducing a $2,000 annual limit on prescription drug expenses.

Donald Trump’s Approach:

Trump has emphasized deregulation and increased oil and gas production as strategies to lower prices and combat inflation. He has criticized the Biden-Harris administration for high inflation rates and suggested that reducing regulatory burdens and expanding domestic energy production could lead to lower prices.

VI. TRADE AND TARIFFS

Kamala Harris’ Position:

Harris has criticized Trump's approach to using broad tariffs, arguing that such measures could raise the cost of everyday goods for middle-class Americans.

Donald Trump’s Position:

Trump has proposed implementing new tariffs on all imports, including a 20% tariff across the board and a potential 60% tariff on Chinese imports. His goal is to bring jobs back to the U.S. and boost federal revenue, though economists warn that such tariffs could increase inflation and negatively impact middle-income households.

VII. AFFORDABLE HOUSING INITIATIVES

Kamala Harris’ Proposal:

Harris has introduced a comprehensive plan to address the affordable housing crisis. Her proposals include providing $25,000 in down-payment assistance for first-time homebuyers, building 3 million new housing units, and offering tax incentives for constructing affordable rental housing.

Donald Trump’s Proposal:

Trump has suggested using federal land for new housing construction but has not provided a detailed plan similar to Harris’ multi-part strategy.

SUMMARY

This table highlights the different economic policy proposals by Kamala Harris and Donald Trump, focusing on key issues like taxation, middle-class relief, housing, and inflation.

The economic proposals of Kamala Harris and Donald Trump highlight their contrasting visions for the future of the American economy. Harris focuses on supporting the middle class and working families through targeted tax credits, affordable housing initiatives, and measures to control essential costs. In contrast, Trump emphasizes deregulation, lower corporate taxes, and new tariffs to stimulate economic growth and bring jobs back to the U.S. Voters will have a clear choice between these approaches as they consider which candidate’s economic vision aligns more closely with their own priorities and values.

SOURCES/ RECOMMENDED READ: 

• What voters need to know about Harris’ and Trump’s economic policy proposals | CNN Politics

• US corporate tax: Harris proposes raising rate to 28% to help pay for campaign promises | CNN Politics

• Harris leans into populism with proposal for middle-class and lower-income tax relief | CNN Politics