Former President Donald Trump is set to address the Economic Club of New York to outline his strategy for reducing prices for Americans by cutting regulations and increasing fossil fuel production if re-elected. Trump has proposed lowering the corporate tax rate from 21% to 15%, a move favored by businesses. In contrast, Vice President Kamala Harris, the Democratic nominee, plans to raise the rate to 28% to support entrepreneurship and middle-class prosperity.
Trump's focus on tariffs to bring back manufacturing jobs has raised concerns among economists about potential inflationary impacts. Despite a peak of 9.1% in 2022, inflation has since decreased to 2.9%. President Joe Biden's administration has maintained tariffs on China and restricted exports of advanced computer chips to the country.
Harris advocates for a 28% top capital gains rate, while Biden aims to increase the rate to 39.6% for investors earning over $1 million. Both candidates also seek to raise taxes on investment income. Harris recently proposed expanding tax deductions for business startup expenses and aims to facilitate the creation of 25 million new companies over the next four years.
The contrasting economic visions of Trump and Harris underscore the critical role of the economy in the upcoming election. With divergent approaches to taxation, regulation, and trade policy, voters face a clear choice in determining the future direction of American business and prosperity.
