
Tax Promises Take Center Stage
With just over two months until Election Day, the 2024 US Presidential race is heating up, with both candidates focusing heavily on economic issues and tax policy.
Kamala Harris, the Democratic nominee, has made small businesses a key part of her platform. She has pledged to announce a tax credit for small business startups next week and has previously promised a middle-class tax cut if elected. Harris argues that strengthening the economy requires the participation of small businesses, which employ a significant portion of the American workforce.
In contrast, Donald Trump, the Republican incumbent, has focused his tax agenda on the wealthy and corporations. He has promised to further reduce corporate taxes, which he previously slashed during his first term. Trump also plans to impose a 10% baseline import duty and potentially increase tariffs on Chinese goods by up to 60%. He argues that these measures will boost domestic production and reduce the US trade deficit.
Both candidates have also addressed the issue of the "tax shock" looming in 2026. This refers to the expiration of several tax cuts implemented under the 2017 Tax Cuts & Jobs Act. While some policymakers favor extending these cuts, others argue that they contribute significantly to the US deficit.
Interestingly, both Trump and Harris have proposed tax breaks for the gig economy. This sector, which encompasses independent workers and freelancers, has grown significantly in recent years. Both candidates have pledged to eliminate taxes on tips received for various services.
The 2024 election promises to be a close race, with tax policy playing a central role in the campaigns of both candidates. Voters will have to decide which candidate's approach to taxation best aligns with their own economic priorities.