Where Trump, Harris stand on the economy, wages, and taxes

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FILE-A side-by-side photo of Donald Trump and Vice President Kamala Harris. (Trump photo by John Tully for The Washington Post via Getty Images) (Harris photo by Bridget Bennett for The Washington Post via Getty Images)

The election is a few months away as Vice President Kamala Harris and Donald Trump are laying out their economic agendas in a competitive election race.

One of the big election issues voters are paying attention to heading into November is the economy.

As Harris and Trump gradually offer more details about their economic proposals, here is what they are saying.

Issue: Economy

What Trump has said

The former president wants a dramatic expansion of tariffs on nearly all imported foreign goods. Trump suggested tariffs as high as 100% on Chinese goods. He treats these taxes as a way to fund other tax cuts, lower the deficit and possibly fund child care — though the tariffs could raise prices for consumers without generating the revenues, the AP noted.

To address the nation’s housing issue, Trump has shared ideas for lowering housing costs — including his suggestion in a June speech in Wisconsin that stopping illegal immigration would reduce demand for housing and bring down prices.

During his first presidential term, Trump passed the Tax Cut and Jobs Act in 2017, but it expires in 2025. The law slashed corporate tax rates and changed how the nation taxes businesses in the U.S. while temporarily cutting personal income and estate taxes, changes that benefitted wealthy people and businesses.

What Harris has said

Harris announced a set of economic proposals that includes building homes, cutting taxes, and lowering the cost of groceries, and other basic needs for people.

With the issue of housing costs affecting the nation, the vice president debuted a new ad amplifying her plan to build 3 million new homes over four years to manage inflationary pressures.

Harris is also proposing the government provide $25,000 in assistance to first-time homebuyers.

According to the Associated Press, the vice president’s plan would establish tax breaks for homebuilders focused on first-time buyers and expand existing incentives for companies that construct rental housing.

The AP reported that with local zoning limiting the supply of houses, Haris would double the available funding to $40 billion to encourage local governments to remove the regulations that prevent extra construction.

Issue: Inflation

What Trump has said

Trump has called for cutting taxes and regulations in hopes of lowering inflation and has encouraged increasing oil production in order to lower energy prices, Forbes noted. He has also called for ending taxes on Social Security benefits and touted cutting energy and electricity costs in the U.S. by increasing the production of fossil fuels.

What Harris has said

The vice president promoted a plan calling for a federal ban on price gouging by food producers and grocery stores, as part of her overall economic policy, to ease inflation and lower the cost of living during a North Carolina rally on August 16.

Harris' grocery pricing proposal would instruct the Federal Trade Commission to penalize "big corporations" involved in price spikes, and it singles out a lack of competition in the meat-packing industry for driving up meat prices.

The annual inflation rate for the United States was 2.9% for the 12 months ending July, compared to the previous rate increase of 3%, according to Department of Labor data published on August 14, 2024.

Issue: Wages

What Trump has said

Donald Trump wants to make tips tax-free under a new proposal, although specifics of how the plan will work are unknown. Trump also promised to eliminate taxes on tipped income, but this would require approval by Congress.

Trump announced his plan during a June 9 rally in Nevada, a key battleground state with six electoral votes in the race for the White House.

He has not explained whether he wants to exempt tips from just income taxes or the payroll tax too. The payroll tax funds Medicare and Social Security, the AP noted.

For workers, a general exemption may mean more take-home pay. And for the federal government, it could mean bigger budget deficits.

What Harris has said

Harris called for raising the minimum wage in a Las Vegas speech in early August, but her campaign has not specified how high she believes it should be raised.

The vice president promised to work to eliminate taxes on tips paid to restaurant and other service industry employees, similar to Trump.

Harris' campaign told the Associated Press that if she is elected president, she would work with Congress to draft a proposal that includes an income limit and other terms to keep hedge fund managers and lawyers from structuring their compensation to try to take advantage of the policy. Harris also would push for the proposal alongside one to increase the federal minimum wage.

Issue: Taxes

What Trump has said

Trump proposed to extend the 2017 tax cuts that he signed into law, when he was president, which will expire at the end of 2025. That package slashed the corporate tax rate from 35% to 21% and doubled the standard deduction and child tax credit, the Associated Press reported.

These parts will remain until a new law is implemented, but other tax cuts in the former president’s package will end without action by Congress. Trump told the AP that he wants to trim the corporate tax rate to 15% and cancel any tax hikes that happened under President Joe Biden.

Trump has urged Congress to pass legislation giving the president authority to impose a reciprocal tariff on any country that imposes one on the U.S.

Much of the Republican presidential candidate's trade agenda has focused on China. Trump has proposed phasing out Chinese imports of essential goods including electronics, steel and pharmaceuticals and wants to ban Chinese companies from owning U.S. infrastructure in sectors such as energy, technology and farmland.

What Harris has said

Harris is pledging tax cuts for more than 100 million working and middle class households. She will do this by restoring two tax cuts designed to help middle class and working Americans: the Child Tax Credit and the Earned Income Tax Credit, per Harris' campaign website.

The vice president wants to make permanent a tax credit of as much as $3,600 per child and offer a special $6,000 tax credit for new parents. Harris says her administration would expand tax credits for first-time homebuyers and push to build 3 million new housing units in four years, while wiping out taxes on tips and endorsing tax breaks for entrepreneurs.

According to the AP, Harris also wants to raise the corporate tax rate to 28% and the corporate minimum tax to 21%. The current corporate rate is 21% and the corporate minimum, raised under the Inflation Reduction Act, is at 15% for companies making more than $1 billion a year. But Harris would not increase the capital gains tax as much as Biden had proposed on investors with more than $1 million in income.