With less than two months away from the U.S. presidential election on November 5, the race is heating up. How do Trump’s and Harris’ policies stack up, and where do they diverge? How might their policies affect the broader economy? This article explores these questions.
In a nutshell, based on our analysis of the candidates’ public statements and party platforms of both parties, Trump and Harris share similar views on tax and housing policies, both advocating for tax cuts and expanding housing supply, but their stances diverge significantly on issues such as healthcare, immigration, energy policy, and financial regulation.
I. Tax Policy: Both Support Tax Cuts, But Differ on Corporate Tax and Tariffs
Trump wants to offset increased government spending by imposing higher tariffs, while Harris plans to raise corporate tax rates to balance the budget.
Both candidates have proposed tax cuts to varying degrees. Trump’s primary focus is on extending parts of the 2017 Tax Cuts and Jobs Act (TCJA), mainly the provisions set to expire in 2025, including higher individual alternative minimum tax (AMT) amounts, standard deductions, and estate tax exemptions. Additionally, Trump has also proposed the policy of no taxes on tips and overtime pay.
Harris also advocates for tax cuts but emphasizes on tax relief for middle- and lower-income earners, while proposing higher taxes on the wealthy. For example, under her administration, extensions of TCJA would likely only apply to provisions benefiting those earning less than $400,000 annually.
There are, however, notable differences in the two candidates’ proposals for corporate tax and tariffs:
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Corporate Taxes: Harris proposes to increase the corporate tax rate from the current 21% to 28%, whereas Trump seeks to lower it to 15%.
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Tariffs: Since his campaign began, Trump has repeatedly called for higher tariffs, proposing a 10-20% tariff on all overseas imports into the U.S., and a tariff of 60% or higher on Chinese goods. He has even suggested replacing income taxes with tariffs. Harris, on the other hand, has not placed much emphasis on tariffs.
II. Housing Policy: Both Focus on Expanding Supply & Supporting First-Time Homebuyers
In terms of housing policy, the positions on two sides are quite similar. Both the Democrats and Republicans aim to expand housing supply to alleviate the housing affordability crisis and support first-time homebuyers. Although Trump has spoken less about housing policy, he has mentioned plans to open up certain federal lands for the construction of new homes.
On the other hand, the Harris campaign has laid out more specific proposals, including plans to build 3 million new housing units over four years and create a $40 billion fund to encourage local innovation in housing supply solutions.
Additionally, Harris has proposed offering up to
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