This four-part series examines the candidates' positions and policy proposals in an effort to cut through the noise and highlight where Kamala Harris and Donald Trump stand on critical issues facing Americans in this election. Information is sourced from campaign websites and what the candidates have said on the trail and in interviews.
It’s the economy, stupid—at least in the 2024 election, it is.
After a once-in-a-century pandemic disrupted supply chains, causing the cost of goods and services to skyrocket, the U.S. entered an economic downturn. Facing a potential recession, President Joe Biden orchestrated a “soft landing” that stabilized the economy. The Federal Reserve responded by slashing interest rates. Unemployment is also down.
But many middle-class Americans aren’t feeling the good vibes yet, with food costs up and housing prices at all-time highs.
Voters overwhelmingly say the economy is one of the top issues motivating them to go to the polls. While most Americans think it’s doing poorly, people are split on who can fix it.
The economic policies of Kamala Harris and Donald Trump reflect foundational differences between the two candidates—and both major American political parties. Harris aims to strengthen the middle class with targeted tax reforms and assistance for first-time homebuyers. Trump seeks to cut corporate taxes and impose tariffs to encourage a return to American manufacturing.
Kamala Harris' Economic Agenda
Kamala Harris speaks during a CNN town hall in Aston, Pa., on Oct. 23.
Kamala Harris has championed an “opportunity economy” aimed at rebuilding the hollowed-out middle class. Her focus centers on addressing corporate practices, promoting wealth building, and lowering inflation. Her administration plans to tackle economic well-being through tax reforms, although any changes will require legislative approval.
Middle-class tax cuts and taxing the rich
Harris aims to restore two crucial tax cuts for the middle class: the child tax credit and the earned income tax credit. This plan would expand a tax credit to new parents, including a $6,000 benefit for families in the first year of their child's life. She has also pledged to enact a billionaire minimum tax, which includes a 25% minimum tax on total income and on so-called “unrealized gains” exceeding $100 million.
Small business tax credit and loan forgiveness
She proposes a small business tax credit that would increase the startup deduction from $5,000 to $50,000. This initiative aims to provide many entrepreneurs with the financial support needed to launch their businesses. Additionally, she plans to allow up to $20,000 of a million-dollar business loan to be entirely forgivable, particularly for entrepreneurs in underserved communities.
Down-payment assistance and increase housing supply
Harris plans to offer a $25,000 down-payment grant to first-time homebuyers, targeting millennials and Gen Zers to help them begin to grow their wealth by entering a currently inaccessible housing market. Her agenda includes building 3 million affordable rental units and homes during her first term to address the national housing supply crisis that is contributing to high rental prices. This plan also involves outlawing new forms of price fixing by corporate landlords
Ban on Price Gouging
Within her first 100 days, Harris intends to implement a national ban on corporate price gouging on groceries.
Raise the minimum wage and end loopholes for tipped workers
Harris advocates for raising the minimum wage to $15 an hour. She pledges to end sub-minimum wage loopholes for tipped workers and those with disabilities, as well as eliminate taxes on tips for service and hospitality workers.
Donald Trump’s Economic Agenda
Donald Trump speaks at a news conference at Trump National Golf Club on Aug. 15.
Donald Trump promotes his “Make America Great Again” economic agenda, which focuses on cutting corporate and income taxes, as well as pursuing an America-first policy that emphasizes domestic production.
More Corporate Tax Cuts
Trump plans to extend the corporate tax rate cuts from his 2017 Tax Cuts and Jobs Act, reducing the rate from 21% to 15% before the cuts expire in 2026. He has stated that companies that outsource, offshore, or replace American workers will not qualify for these tax breaks, incentivizing corporations to retain domestic production and employment. He has also stated he would end taxation on Social Security benefits and tips.
Tariffs on Imports
He proposes a general 10-20% tariff on foreign goods and a 60% tariff on Chinese goods, aiming to disincentivize foreign imports and bolster U.S. manufacturing.
Make Auto Loans Tax-Deductible
During a speech in Detroit, he proposed making the interest on auto loans tax-deductible, a move intended to make car ownership more affordable and revitalize domestic auto production.
Lower Interest Rates
Trump plans to urge the Federal Reserve to lower interest rates to between 2-3%. While the president appoints the Fed chair and voting members, he does not directly control interest rate decisions. Trump explained his philosophy at an Oct. 14 town hall in Pennsylvania that “interest rates will follow as the energy [costs] goes down.”
Reduce Regulations on Cryptocurrency
He has pledged to end the “crypto crackdown,” opposing the creation of a Central Bank digital currency. Trump emphasizes the need to protect individuals’ rights to mine Bitcoin and transact without government surveillance.
Increase Housing Supply on Federal Land by Excluding Migrants
Trump said at an Arizona rally that migrants tend to live in low-income rentals, so he’d force rental companies offering subsidized housing to require proof of citizenship from its tenants and ban undocumented migrants from getting mortgages. Trump's policy includes opening limited portions of federal lands for new home construction, ensuring that national parks and protected lands remain untouched. “These zones will be ultra-low tax and ultra-low regulations — one of the great small business job creation programs,” he told the Economy Club of New York.
