Presidential Candidates On The Economy

Both Trump and Harris will presumably be pressed to flesh out the details of their plans during the presidential debate on September 10. In the meantime, here’s a look at some of the ideas the candidates have floated on taxes, tariffs, housing and prices: 

Talking Taxes

Both presidential candidates agree that federal income taxes on tips should be eliminated, which would affect roughly four million people. Trump has also mentioned eliminating payroll taxes on tips. 

Harris has promised to expand two tax breaks--the Earned Income Tax Credit and the Child Tax Credit—which her campaign says will give more than 100 million Americans a tax cut.  She’d boost the child tax credit to $3,600, where it stood during the pandemic, up from $2,000 currently. Her plan also includes a $6,000 child tax credit for middle- and low-income families during the first year of a child’s life. The Earned Income Tax Credit would be increased for workers without dependent children to roughly $1,500 under Harris. 

Trump would like to extend the many tax cuts included in the 2017 Tax Cuts and Jobs Act put in place during his first term as president. They’re due to expire after 2025.  He has also said he’d like to lower the corporate tax rate to 15% from 21% and he’d like to end taxes on Social Security benefits. 

Conversely, Harris has said she would not extend the tax cuts that went into effect under Trump’s 2017 Tax Cuts and Jobs Act. She would like to increase the corporate tax rate to 28%. But she has also said she won’t raise taxes on anyone making under $400,000 a year.

Lowering Prices

Both candidates are focused on lowering costs for everyday Americans, but they have different methods. 

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Harris has focused on the price of groceries and has promised to ban price gouging by food suppliers and grocery stores. Dozens of states already have laws that prevent price gouging during times of crisis, like a hurricane or pandemic. But Harris is proposing a federal law with which companies across America would have to comply. Harris has yet to lay out how she would prevent price gouging or whether the proposal would only apply during times of crisis. She has also said her administration would scrutinize mergers between large food companies, to ensure there’s enough competition in the industry.  

Trump has compared Harris’s grocery plan to those of communist regimes setting prices, which often results in product shortages. Instead, Trump has said he’d direct agency heads and Cabinet secretaries to use all of their tools and authority to bring consumer prices and inflation down. He’d also eliminate costly, job-killing regulations and boost oil and gas production. 

Talking Tariffs

Trump has proposed an across-the-board tariff of 10% to 20% on all imports from all countries. He’d like an additional tariff of 60% or more on all Chinese imports and a 100% tariff on all cars made outside the US. Vice President Harris has countered that Trump’s proposal to place tariffs on all products will result in higher prices on just about everything. 

That said, the Biden-Harris administration has kept tariffs enacted during the Trump administration in place and in May announced a plan to raise tariffs on certain Chinese products including steel and electric vehicles over the next two years. 

Harris on Housing

Harris has targeted the lack of affordable housing. As president she’ll work with the housing industry to build homes to own or rent and cut red tape at the state and local levels to make building homes easier. By the end of her first term, she promises that 3 million new, affordable homes and rentals will be built for the middle class. She’ll also give first-time homebuyers $25,000 towards the down payment on a home, according to a speech she delivered on her economic plans. 

Harris also proposed a $40 billion fund for local governments to develop innovative solutions to the lack of housing supply. And there are reports that she’ll offer homebuilders tax incentives to build homes for first-time buyers. Both candidates have discussed allowing housing construction on tracks of federal land. 

The Road Ahead

Elections and politics have always and will always impact financial policy in one way or another. So regardless of who our next president turns out to be, the key is to keep abreast of those changing policies and the resulting market shifts so that you can adjust your portfolio and financial plan accordingly.

Our team of financial advisors at WHZ can do the heavy lifting for you, helping to ensure that the path to your financial goals is always headed in the optimal direction. Contact us for a  complimentary consultation  or call us at (860) 928-2341. We’re here to provide you with a hyper-personalized financial plan along with “Absolute Confidence. Unwavering Partnership. For Life. “  

Authored by Principal/Managing Partner Laurence Hale AAMS, CRPS®. Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Weiss, Hale & Zahansky Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084. 860-928-2341. www.whzwealth.com.