Harris and Trump: Their Economic Plans

Our goal with this post is simple: to provide clear, unbiased insights into the proposals of Kamala Harris and Donald Trump, equipping you with the information you need to understand their visions for the economy. We’re not here to sway opinions or engage in political debate—just to help you make informed decisions.

Elections play a pivotal role in shaping policies that directly impact jobs, wages, taxes, healthcare, and business opportunities. By breaking down each candidate's economic plan, we aim to highlight their priorities and strategies, as well as the potential benefits and drawbacks. This is not about who is "right" or "wrong"—it’s about ensuring you have the facts to assess how these plans might affect you, your community, and the broader economy.

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Kamala Harris’s Economic Plan

Kamala Harris’s 2024 economic plan centers on tackling income inequality, lowering costs for working families, and expanding economic opportunities, especially for underserved communities. While building on key Biden administration initiatives, her platform introduces new policies aimed at bolstering middle-class security and promoting inclusive growth through the creation of an “Opportunity Economy.”

Tax Policy and Credits: Harris proposes increasing the top corporate tax rate from 21% to 28% and raising the highest personal income tax rate to 39.6% for high earners. She aims to expand the Child Tax Credit to $6,000 for families with newborns and restore the American Rescue Plan’s enhanced child tax benefits, which provide up to $3,600 per child. Additionally, she plans to increase the Earned Income Tax Credit (EITC) for childless workers and exempt tips from income taxes.

• Restore the expanded Child Tax Credit, offering up to $3,600 per child.

• A new $6,000 tax credit for families in the first year of a child’s life.

• Expanded Earned Income Tax Credit to benefit more low-income workers.

   

Housing and Small Business Support: To tackle housing affordability, Harris has proposed a $25,000 down payment assistance program for first-time homebuyers and tax credits for developers building affordable housing. For entrepreneurs, especially those in underserved communities, she plans to increase the small business startup tax deduction from $5,000 to $50,000. Her platform also highlights forgivable loans for Black entrepreneurs and mentorship programs to create opportunities for marginalized groups.

• Partner with the private sector to build 3 million new homes and ease the housing shortage.

• Offer $25,000 in down-payment assistance for first-time homebuyers.

• Crack down on large corporate landlords using algorithms to raise rents.

• Introduce legislation to prevent bulk home purchases by institutional investors.

   

Healthcare and Cost of Living: Harris’s healthcare initiatives include capping insulin costs at $35 and limiting annual out-of-pocket prescription drug expenses to $2,000. She supports expanding Medicare’s authority to negotiate drug prices faster, aiming to lower the burden of medical debt and healthcare costs. Her plan also includes measures to prevent price gouging in groceries and housing markets.

• Make ACA tax credits permanent, saving families $800 annually on premiums.

• Cap insulin at $35/month and out-of-pocket Medicare drug costs at $2,000/year.

• Expand Medicare negotiations to lower drug prices faster.

• Build resilient food supply chains and reduce anti-competitive practices in grocery markets.

• Increase clean energy production and offer tax credits for home energy technologies.

   

Opportunity Economy and Community Development: Harris emphasizes job creation and investment in community development by fostering partnerships with institutions that support minority-owned, small, and rural businesses. Her plan aims to build an "opportunity economy" where individuals from all backgrounds have access to the resources, skills, and opportunities needed for economic mobility. This includes targeted investments in affordable housing, local entrepreneurship, workforce training, and infrastructure projects, ensuring that traditionally underserved communities can thrive in a more inclusive economy.

• Generate 25 million new business applications over the next four years.

• Expand the startup expense deduction from $5,000 to $50,000.

• Invest in workforce programs to provide job security, including for those without college degrees.

• Support U.S. leadership in new technologies and revitalize American manufacturing.

   

Harris’s economic vision centers on expanding social programs and redistributing tax burdens to high-income individuals and corporations, aiming to build a more inclusive economy. However, critics point out that some of her tax policies might have a dampening effect on economic growth, as they could reduce investments and employment in certain sectors.

Sources

-Penn Wharton Budget Model for Kamala 2024

-Kamala Harris’s Economic Platform (2024)

Donald Trump’s Economic Plan

Donald Trump's 2024 economic plan emphasizes key priorities such as tax cuts, tariffs, energy production, and deregulation. It builds on previous policies while introducing new measures aimed at curbing inflation and revitalizing domestic manufacturing. The plan reinforces "America First" principles by focusing on energy independence, protecting American workers, and fostering a manufacturing resurgence.

Tax Policy: Trump’s 2024 economic plan includes extending the 2017 Tax Cuts and Jobs Act (TCJA), maintaining lower corporate tax rates while proposing an additional reduction to 15%. It also aims to simplify personal income tax brackets and eliminate taxes on Social Security benefits and tips, providing targeted relief for seniors and service industry workers.

• Make the Trump tax cuts permanent, including expanded child tax credits and no taxes on tips for service workers.

• Implement new tax incentives to encourage homeownership and small business growth.

   

Trade and Tariffs: A significant component of Trump’s economic strategy is the reintroduction of tariffs. He has proposed across-the-board tariffs of 10-20% on all imports and even higher tariffs—up to 60%—on goods from China. These measures are intended to incentivize domestic production, though economists warn they could lead to higher consumer prices and inflation.

• Turn the U.S. into a manufacturing superpower by discouraging outsourcing and revitalizing domestic supply chains.

• Impose baseline tariffs on foreign goods to protect American industries and jobs.

• Revoke China’s most-favored-nation status and reduce reliance on Chinese imports.

• Ban foreign ownership of U.S. real estate and critical industries.

• Promote trade policies that favor U.S. producers over foreign competitors.

   

Energy Policy: Trump has promised to revive fossil fuel production, pledging to "drill, baby, drill" and roll back environmental regulations. He also intends to reduce federal efforts addressing climate change, including reversing the Inflation Reduction Act’s climate initiatives and withdrawing from international climate agreements.

• Lift restrictions on oil, natural gas, and nuclear energy production to reduce prices.

• End the “Green New Deal” and promote domestic drilling (“Drill, baby, drill”).

• Ensure energy dominance to fuel American factories and industries.

• Cancel electric vehicle mandates to reduce costs for manufacturers and consumers.

   

Spending, Deregulation, and Affordable Housing: Another central aspect of Trump's plan involves reducing government spending and eliminating regulations. He has discussed creating a government efficiency commission to reduce waste. Additionally, his plan involves scrapping federal requirements for electric vehicles and streamlining permits for energy development. Another key component is housing, where Trump aims to increase affordable housing by cutting zoning regulations and incentivizing local governments to expedite construction projects.

• Slash federal spending and reinstate Trump-era deregulation policies 

• Eliminate unnecessary regulations that burden businesses and drive up costs for families.

• Repeal regulations hindering AI innovation and support free-market AI development.

• Oppose government-controlled digital currencies to safeguard personal financial freedom.

• Expand U.S. manufacturing into space and enhance partnerships with private space ventures.

• Open federal lands for housing development and reduce mortgage rates by tackling inflation.

   

While Trump argues that these measures will reduce inflation and foster economic growth, critics warn that tariffs could hurt consumers, increase prices, and risk triggering a recession. His energy policies, while supporting traditional industries, have also drawn opposition for their environmental impact and potential long-term economic consequences.

Sources

-Penn Wharton Budget Model for Trump 2024

-2024 GOP (Donald Trump) Platform 

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices.