section_path: Campaign issues/Economic issues
section_name: Economic issues
paragraph_text: Economic issues
  
  Voters consistently cited the economy as their top issue in the 2024 election. Following the COVID-19 pandemic, a global surge in inflation ensued that raised prices on many goods, although the U.S. inflation rate had declined significantly during 2023 and 2024. The New York Times reported that both candidates "embraced a vision of a powerful federal government, using its muscle to intervene in markets in pursuit of a stronger and more prosperous economy". The Wall Street Journal reported that economists found Trump's proposed policies created a greater risk of stoking inflation and generating higher budget deficits, relative to the Harris plan. Twenty-three Nobel Prize-winning economists signed a letter characterizing the Harris economic plan as "vastly superior" to the Trump plan. Trump's designated government efficiency leader Elon Musk said in October that he expected Trump's plan would involve more than $2 trillion in federal spending cuts and would cause "some temporary hardship." Harris ran on a pro-union platform. She promoted the passage of the Infrastructure Investment and Jobs Act, funding for small business, and previously supported an act as senator to provide a $6,000 tax credit for middle and low-income families. Harris promised to address price gouging, bring down costs, ban hidden fees and late charges from financial institutions, limit "unfair" rent increases and cap prescription drug costs, which she said would "lower costs and save many middle-class families thousands of dollars a year".
  
  The New York Times described Harris' economic policy as embracing "the idea that the federal government must act aggressively to foster competition and correct distortions in private markets". Harris proposed raising taxes on corporations and high-earners to fund services for the lower and middle classes and reduce the deficit. Harris stated she supported increasing the top tier capital gains tax rate to 28%, up from 20% and lower than Biden's proposed 39.6%. Harris stated her support for a Billionaire Minimum Income Tax, increasing the tax on stock buybacks to 4%, and a ten-fold tax reduction for small business ranging from $5,000 to $50,000 in relief. Harris also supported efforts to create a tax on unrealized gains for those with more than a $100 million in net worth if they do not pay a minimum 25% tax rate on their income inclusive of unrealized gains so long as 80% of said wealth is in tradeable assets. The plan would impact a small percentage of the wealthy in the United States, and Axios reported most tech founders and investors would be spared. Harris also announced support for restoring the corporate tax rate to 28% among several other tax proposals to raise taxes and close loopholes for corporations and the wealthy that would bring in $5 trillion in additional revenue over 10 years. Harris proposed tax breaks to companies delivering economic benefit, such as manufacturing technologies that mitigate climate change and building affordable housing, and proposed a ban on corporate price gouging to "help the food industry become more competitive". Harris also expressed support for student debt relief, and said she supported raising the minimum wage.
  
  In response to the housing crisis in the United States, Harris said she would increase home construction to reduce housing costs, arguing that it negatively impacts the economy and hurts working-class families. Harris proposed directing $40 billion to construction companies to build starter homes, and promised to send $25,000 in down-payment assistance to every first time home buyer. Harris said she would urge Congress to enforce fair housing laws and pass a bill to bar property owners from using services that "coordinate" rents through the passage of the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, and also call on Congress to pass the Stop Predatory Investing Act by removing tax benefits to Wall Street firms that buy up large numbers of single-family homes. Trump proposed further individual and corporate tax cuts beyond the 2017 Tax Cuts and Jobs Act. Trump argued that keeping taxes low for the wealthy increases job creation, and that these policies coupled with a crackdown in illegal immigration and reduction in inflation would help the middle class. Trump said he would reduce regulation of business through the creation of an efficiency commission led by Musk, along with reducing environmental regulation. By October 2024, Musk was Trump's second-largest individual campaign donor. Trump said deporting millions of immigrants would bring housing prices down, although most economists argue it could raise prices by removing construction workers who use less real estate. Trump and Harris support not taxing tips for at least hospitality and service workers. Trump suggested that he would abolish the federal income tax and replace it with tariffs. In June 2024, Trump discussed the idea of eliminating the income tax in a private meeting with Republican politicians. In October 2024, Trump suggested that he would scrap the income tax if he wins, pointing out that tariffs were the main sources of revenue in the 19th century.
  
  Trump's stated trade policy involves the United States decoupling from the global economy and having the country become more self-contained and exerting its power through individual trade dealings. This would be attempted largely through a universal baseline tariff, set from 10% to 20% on all imports, with increased penalties if trade partners manipulate their currency or engage in unfair trade practices. Trump called for 100% tariffs on cars made outside the United States and a minimum 60% tariff on Chinese goods. Trump stated his plans to urge Congress to pass a Trump Reciprocal Trade Act to bestow presidential authority to impose a reciprocal tariff on any country that imposed one on the United States. The Washington Post reported in January 2024 that Trump was preparing for a massive trade war. Trump's trade policies were described as protectionist, neo- mercantilist, or autarkist, and increasing inflation became a more common critique of Trump's economic plans. In June 2024, 16 Nobel Prize in Economics laureates signed an open letter arguing that Trump's fiscal and trade policies coupled with efforts to limit the Federal Reserve 's independence would reignite inflation in the United States. Moody's, as well as most economists surveyed by The Wall Street Journal in July 2024, predicted that inflation would be worse under Trump than Biden, a result due in part to tariffs, a crack down on illegal immigration, and larger deficits. Trump incorrectly insisted foreign exporters pay tariffs imposed by the U.S. government; American importers pay tariffs on goods upon arrival at U.S. ports, meaning tariffs are taxes that raise prices for imported products Americans buy. One non-partisan analysis estimated the proposed tariffs would cost $1,700 per year for the average household. The Committee for a Responsible Federal Budget found that Trump's plans would grow the national debt at roughly twice the rate of Harris' plan, while the Institute on Taxation and Economic Policy found Trump's plan would only benefit the top 5% of earners.
  
  Voters consistently cited the economy as their top issue in the 2024 election. Following the COVID-19 pandemic, a global surge in inflation ensued that raised prices on many goods, although the U.S. inflation rate had declined significantly during 2023 and 2024. The New York Times reported that both candidates "embraced a vision of a powerful federal government, using its muscle to intervene in markets in pursuit of a stronger and more prosperous economy". The Wall Street Journal reported that economists found Trump's proposed policies created a greater risk of stoking inflation and generating higher budget deficits, relative to the Harris plan. Twenty-three Nobel Prize-winning economists signed a letter characterizing the Harris economic plan as "vastly superior" to the Trump plan. Trump's designated government efficiency leader Elon Musk said in October that he expected Trump's plan would involve more than $2 trillion in federal spending cuts and would cause "some temporary hardship." Harris ran on a pro-union platform. She promoted the passage of the Infrastructure Investment and Jobs Act, funding for small business, and previously supported an act as senator to provide a $6,000 tax credit for middle and low-income families. Harris promised to address price gouging, bring down costs, ban hidden fees and late charges from financial institutions, limit "unfair" rent increases and cap prescription drug costs, which she said would "lower costs and save many middle-class families thousands of dollars a year".
  
  The New York Times described Harris' economic policy as embracing "the idea that the federal government must act aggressively to foster competition and correct distortions in private markets". Harris proposed raising taxes on corporations and high-earners to fund services for the lower and middle classes and reduce the deficit. Harris stated she supported increasing the top tier capital gains tax rate to 28%, up from 20% and lower than Biden's proposed 39.6%. Harris stated her support for a Billionaire Minimum Income Tax, increasing the tax on stock buybacks to 4%, and a ten-fold tax reduction for small business ranging from $5,000 to $50,000 in relief. Harris also supported efforts to create a tax on unrealized gains for those with more than a $100 million in net worth if they do not pay a minimum 25% tax rate on their income inclusive of unrealized gains so long as 80% of said wealth is in tradeable assets. The plan would impact a small percentage of the wealthy in the United States, and Axios reported most tech founders and investors would be spared. Harris also announced support for restoring the corporate tax rate to 28% among several other tax proposals to raise taxes and close loopholes for corporations and the wealthy that would bring in $5 trillion in additional revenue over 10 years. Harris proposed tax breaks to companies delivering economic benefit, such as manufacturing technologies that mitigate climate change and building affordable housing, and proposed a ban on corporate price gouging to "help the food industry become more competitive". Harris also expressed support for student debt relief, and said she supported raising the minimum wage.
  
  In response to the housing crisis in the United States, Harris said she would increase home construction to reduce housing costs, arguing that it negatively impacts the economy and hurts working-class families. Harris proposed directing $40 billion to construction companies to build starter homes, and promised to send $25,000 in down-payment assistance to every first time home buyer. Harris said she would urge Congress to enforce fair housing laws and pass a bill to bar property owners from using services that "coordinate" rents through the passage of the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, and also call on Congress to pass the Stop Predatory Investing Act by removing tax benefits to Wall Street firms that buy up large numbers of single-family homes. Trump proposed further individual and corporate tax cuts beyond the 2017 Tax Cuts and Jobs Act. Trump argued that keeping taxes low for the wealthy increases job creation, and that these policies coupled with a crackdown in illegal immigration and reduction in inflation would help the middle class. Trump said he would reduce regulation of business through the creation of an efficiency commission led by Musk, along with reducing environmental regulation. By October 2024, Musk was Trump's second-largest individual campaign donor. Trump said deporting millions of immigrants would bring housing prices down, although most economists argue it could raise prices by removing construction workers who use less real estate. Trump and Harris support not taxing tips for at least hospitality and service workers. Trump suggested that he would abolish the federal income tax and replace it with tariffs. In June 2024, Trump discussed the idea of eliminating the income tax in a private meeting with Republican politicians. In October 2024, Trump suggested that he would scrap the income tax if he wins, pointing out that tariffs were the main sources of revenue in the 19th century.
  
  Trump's stated trade policy involves the United States decoupling from the global economy and having the country become more self-contained and exerting its power through individual trade dealings. This would be attempted largely through a universal baseline tariff, set from 10% to 20% on all imports, with increased penalties if trade partners manipulate their currency or engage in unfair trade practices. Trump called for 100% tariffs on cars made outside the United States and a minimum 60% tariff on Chinese goods. Trump stated his plans to urge Congress to pass a Trump Reciprocal Trade Act to bestow presidential authority to impose a reciprocal tariff on any country that imposed one on the United States. The Washington Post reported in January 2024 that Trump was preparing for a massive trade war. Trump's trade policies were described as protectionist, neo- mercantilist, or autarkist, and increasing inflation became a more common critique of Trump's economic plans. In June 2024, 16 Nobel Prize in Economics laureates signed an open letter arguing that Trump's fiscal and trade policies coupled with efforts to limit the Federal Reserve 's independence would reignite inflation in the United States. Moody's, as well as most economists surveyed by The Wall Street Journal in July 2024, predicted that inflation would be worse under Trump than Biden, a result due in part to tariffs, a crack down on illegal immigration, and larger deficits. Trump incorrectly insisted foreign exporters pay tariffs imposed by the U.S. government; American importers pay tariffs on goods upon arrival at U.S. ports, meaning tariffs are taxes that raise prices for imported products Americans buy. One non-partisan analysis estimated the proposed tariffs would cost $1,700 per year for the average household. The Committee for a Responsible Federal Budget found that Trump's plans would grow the national debt at roughly twice the rate of Harris' plan, while the Institute on Taxation and Economic Policy found Trump's plan would only benefit the top 5% of earners.