Trump and Harris debate tax strategies to boost US economy

In a recent debate, Donald Trump and Kamala Harris presented contrasting tax strategies aimed at stimulating the U.S. economy. Trump advocates for significant tax cuts, including eliminating taxes on tips and Social Security income, which could cost the government $1.2 trillion over a decade. He also proposes reducing the corporate tax rate from 21% to 15% and implementing tariffs to encourage domestic manufacturing. However, experts warn that his plans may not significantly boost economic growth due to the resulting debt. On the other hand, Harris emphasizes a more cautious approach, asserting that her spending initiatives would be fully funded. Her campaign suggests that revenue sources would align with President Biden's budget proposal for 2025. Despite this, the Penn Wharton Budget Model estimates that her policies could increase spending by $2.3 trillion, potentially hindering economic growth compared to Trump's proposals. The debate highlights the differing philosophies regarding fiscal policy, with Trump favoring aggressive tax cuts and Harris advocating for responsible spending. Trump's tax cuts are projected to benefit the wealthiest Americans significantly, while providing modest gains for lower-income groups. In contrast, Harris's approach aims to support working and middle-class Americans through targeted tax breaks and investments. Ultimately, the contrasting strategies reflect broader ideological divides on how best to stimulate economic growth and manage federal deficits, raising questions about the long-term implications of either approach for the U.S. economy.