Highly anticipated US Presidential Debate started with Taxes

Taxes at the Forefront of the US Presidential Elections with “Trump Sales Tax,” “Tax Cuts for Billionaires,” and “Tax Deductions” as buzzwords

| Picture: colage from debate

In the highly anticipated U.S. presidential debate, taxes took center stage as Vice President Kamala Harris and former President Donald Trump clashed over their economic plans. Both candidates presented contrasting visions for the future, with a particular focus on middle-class relief, tax cuts, and tariffs.

HARRIS’ VISION: THE OPPORTUNITY ECONOMY

Vice President Kamala Harris emphasized her upbringing in a middle-class family, using it as a foundation to introduce her plan aimed at strengthening middle-class and working families. Harris outlined her vision for what she calls an "opportunity economy," a plan she believes will ease the burden on families struggling with high housing costs and the rising expenses of raising children.

One of Harris' key proposals is a $6,000 child tax credit, intended to provide relief to young families in the early stages of parenthood. She also focused on supporting small businesses, suggesting a $50,000 tax deduction for start-up businesses. According to Harris, her approach would foster innovation and entrepreneurial growth while directly benefiting those at the heart of the American economy: small business owners.

Harris was quick to criticize Trump’s economic policies, labeling them as beneficial only to the wealthy. She warned that Trump’s tax cuts for billionaires and large corporations would add $5 trillion to the national deficit. At the same time, her plan would extend tax relief to middle-class families, potentially easing their financial burden by $4,000 annually.

Speaking about tariffs, Harris referred to them as 'Trump sales tax, claiming they would impose a 20% tax on everyday goods. Vice President stated that economists predict that under this plan, middle-class families could end up paying an additional $4,000 a year, all “because of his policies and his ideas about what should be the backs of middle-class people paying for tax cuts for billionaires”.

TRUMP’S COUNTER: TARIFFS AND ECONOMIC NATIONALISM

In response, former President Trump refuted Harris' claim that his policies include a national sales tax, clarifying that his strategy involves imposing tariffs on foreign imports rather than taxing American consumers directly. Trump positioned tariffs as a tool for economic nationalism, asserting that countries like China would be forced to repay the U.S. for its global contributions. He boasted about the billions collected from tariffs during his previous administration and claimed this approach did not lead to inflation then.

Trump also attacked Harris' claims about inflation, stating that inflation has reached levels that "break up countries under the current administration." He attributed the rise in inflation to the policies of Harris and President Joe Biden, arguing that his tariffs would restore economic stability without burdening the middle class.

A DEBATE ON ECONOMIC GROWTH AND DEFICITS

Both candidates turned to expert opinions to bolster their arguments. Harris cited analysis from Goldman Sachs and the Wharton School, which projected that Trump’s economic policies could exacerbate inflation and significantly increase the national deficit. In contrast, Harris claimed her plan would provide sustainable growth without inviting economic risks like a recession.

Trump countered by citing his credentials as a graduate of the Wharton School of Finance and asserted that top professors from the institution supported his plan. He reiterated that his approach would bring back the strong economy he claimed to have built during his presidency, with substantial tax cuts and job creation. He dismissed Harris’ plan as too closely aligned with Biden’s policies and lacking depth.

THE PATH FORWARD: A CLEAR DIVIDE

As the debate unfolded, Harris sought to differentiate herself not only from Trump but also from President Biden, framing herself as a new generation of leadership. Her focus on optimism and progress was central to her message, promising financial relief for young families and first-time homebuyers through tax credits and down payment assistance.

Trump, on the other hand, leaned on his record, pointing to pre-pandemic economic growth and his handling of the COVID-19 pandemic. He promised to recreate the economic success of his first term through tax cuts and tariffs, while dismissing Harris' critiques as mere soundbites.

The debate on taxes and economic policy highlighted the stark contrast between Harris' focus on middle-class relief and Trump's emphasis on tariffs and economic nationalism. The candidates' economic plans will likely remain a key battleground as the campaign progresses, with voters weighing which vision aligns best with their financial futures.