Harris and Trump to Duel on Key Economic Issues in Upcoming Debate | News

Harris and Trump to Duel on Key Economic Issues in Upcoming Debate Img source: ABC news

Harris and Trump to Duel on Key Economic Issues in Upcoming Debate

For months, Kamala Harris and Donald Trump have attacked each other's economic policies, each trying to drive home their vision for the future of America's economy. Now, the two are set to face off and make their pitches in person in the highly anticipated televised debate.

Among the predicted hot topics are inflation, taxes, and student loan debt. Both candidates have identified these subjects recently in speeches and statements as points of campaign interest and, thus, apparently will be featured in this debate. The event will be broadcast live on Tuesday, September 10, at 9 p.m., Eastern time.

Key Points

• Former President Donald Trump and Vice President Kamala Harris will make their pitches to voters in a televised debate on Tuesday night for his and her different economic visions.
• Trump wants steep and broad tariffs on foreign-made products, a proposal that economists said would drive up inflation. Harris prefers more limited tariffs.
• Trump seeks to make permanent the tax cuts he signed into law in 2017, whereas Harris would raise taxes on high-income earners and the wealthy.

Inflation and Tariffs: A Key Area of Difference

Inflation remains a key concern for households in America. The cost of living has aggressively risen since the outbreak of the COVID-19 pandemic, especially through the period of rapid price increases from 2021 to 2022. Although prices have cooled somewhat, they are still on average up 21% compared with pre-pandemic times, says the Consumer Price Index.

Donald Trump, the Republican candidate, has consistently blamed the Biden administration, including Vice President Kamala Harris, for the rise in inflation. He says their economic policies, especially the far-reaching pandemic relief measures, have contributed to creating the problem. Economists, however, tend to cite any number of contributing causes to the inflation during this period, including supply chain interruptions and the consequence of direct financial assistance, like stimulus checks, that increased consumer demand.

On the other hand, Kamala Harris for the Democrats has also assailed Trump's economic programs. She has pointed out various reports from economic research firms such as Goldman Sachs and Moody's Analytics that say Trump's agenda could balloon inflation and slow down economic growth. According to these analyses, Trump's proposals would place upward pressure on prices, rather than restrain it.

Perhaps the large part of Trump's economic policy is based on the imposition of tariffs on imported goods. In fact, Trump has suggested sweeping tariffs of 10% to 20% on all foreign goods and even higher tariffs-60% or more-on Chinese products. He has defended these tariffs by citing historical precedents, such as the tariff policies of President William McKinley in the late 19th century, and he has also promised that they will incentivize companies to manufacture more goods in America and, therefore, stimulate domestic economic growth.

Yet, most economists remain opposed to the broad use of tariffs. They believe that while some tariffs may protect specific domestic industries, they have a tendency to inflate consumer prices and afford domestic producers with the opportunity to raise those prices without any competition. An analysis by the Peterson Institute for International Economics estimates that a typical American family could face an additional $2,600 in expenses annually due to increased prices under Trump's proposed tariff regime.

On the other hand, Harris is for a narrow approach-a tariff policy mirrored in President Biden's plan for "tariffs only when the action will help build the industry in America the Administration is seeking to develop, such as microchips and electric vehicles." The reason being, this would create a balance between protecting American jobs and avoiding raises in the prices of commodities.

Tax Policies at Odds

Another major economic issue in which Harris and Trump differ is on taxes. The next president will have to decide whether to extend the cuts, introduced under Trump's presidency in 2017, which are due to expire shortly.

Trump seeks to extend all the provisions of the Tax Cuts and Jobs Act, which he signed into law in 2017. The legislation cut taxes by simplifying the tax code, though a number of economic analysts noted that most of those cuts in taxes flowed to the wealthiest Americans and big corporations. Trump says extending the cuts will continue to create growth.

Harris, however, has another way around the issue. Her tax program intends to give relief to the targeted people and make sure the rich and big companies pay a little more into the national kitty. She has promised not to increase taxes on any earning less than $400,000 annually, a position which the Biden administration has taken. Her plan also includes a $25,000 tax credit to first-time homebuyers and an expansion of the child tax credit to up to $3,600 per child from the current $2,000. Harris also proposes increasing corporate taxes from the current 21%, which was cut by Trump, to 28% - a partial reversal of the cuts by Trump.

This is further evidenced by the fact that Harris also seeks to increase the capital gains tax from 20 to 28%, an increase notable but much more reasonable compared to the close-to-40% rate Biden has proposed. This move intends to generate government revenue without affecting investment activity too much and tries to achieve economic equity in a fair manner.

Student Loan Forgiveness: A Divisive Issue

Another contentious issue in the economic debate between Harris and Trump has been the forgiveness of student loan debt. Harris has supported Biden's plan to forgive student loans, which has already wiped out $168.5 billion of student debt for federal borrowers. Other efforts at relief have been caught up in court challenges from mostly Republican-led states and groups, thus delaying or blocking their execution.

Trump has also been very vocal against such policies of student loan forgiveness, labeling them "illegal" and a move that shows overreach of executive powers. He cites that such policies favor only one group of people and may create moral hazard, where borrowers in the future will be less cautious and irresponsible in managing their finances. 

Conclusion

The debate later this year between Kamala Harris and Donald Trump promises a stark contrast of two divergent economic visions. On inflation, tariffs, taxes, and student loan policy, among other things, both have made public contrasting ways through which America's economic challenges should be handled. Their face-off will not only give voters an insight into their respective economic policies but also help shape the future economic direction of the United States.