The United States presidential election is just two months away, and the candidates are making big promises to win over voters.
Democratic nominee Kamala Harris has pledged to announce a tax credit for small business start-ups next week. She has also promised a middle-class tax cut, saying that she will raise taxes on the wealthy and corporations to pay for it.
Republican nominee Donald Trump, on the other hand, has promised to cut taxes for the rich and corporations. He has also pledged to impose a 10% baseline import duty on imported goods, with a possible 60% duty on Chinese imports.
Both candidates are also promising tax breaks for the gig economy. Trump has said he will eliminate taxes on tips, while Harris has said she will do the same for Social Security benefits.
The tax cut promises come at a time when Americans are facing a "tax shock" in 2026. The Tax Cuts & Jobs Act (TCJA) passed in 2017 by the Trump administration is set to expire, and many of the tax cuts it provided will end.
Some policymakers are not in favor of extending these tax cuts, saying that they add an estimated $4.6 trillion to the U.S. deficit over the next 10 years. However, both candidates are promising to extend some of the tax cuts, and it remains to be seen what will happen after the election.