When it comes to the economy, Biden and Trump would approach it very differently. This is how it works.
Donald Trump, a former president, defeated his Republican opponents in the first two primary elections, paving the way for a potential rematch in the general election with Joe Biden, the likely nominee for the Democratic nomination for president.
The economy may turn out to be the deciding factor, as indicated by polls. In a poll conducted by ABC News and Ipsos in November, it was discovered that seventy-four percent of Americans believe that the economy is very important to them, making it the most important worry among voters.
The differences between Biden and Trump are striking when it comes to issues that have a direct impact on the financial situations of regular people, such as taxes, jobs, and trade. The request for comment made by ABC News was not met with a response from either candidate’s team.
The United States economy has surpassed predictions in the most recent quarter, which has boosted hopes of averting a recession.
What you need to know about the most important economic plans that the competing presidential candidates have put out is as follows:
As part of his efforts to make the tax code more equitable, Vice President Biden has advocated for the imposition of higher taxes on individuals who are wealthy as well as on some corporations.
On the other hand, it seems that Trump is prepared to maintain or expand tax cuts, which he considers to be a driver of economic expansion.
As the tax cuts that were passed into law during Trump’s first term begin to be phased out in 2025, the president has stated that he is dedicated to extending them. Previously, Stephen Moore, who acted as an economic adviser to Trump and claims to have contributed to the formation of Trump’s program for a possible second term, stated to ABC News that he has helped create Trump’s agenda.
According to Moore, the administration may try to reduce taxes even lower, but the specifics of such a proposal are still out of the question. Moore continued, “Everything is currently in motion.” “Nothing has been decided.”
The Biden administration, on the other hand, has suggested that affluent individuals should pay higher taxes and has signaled that they would prefer to let some of the tax cuts that Trump has implemented expire.
As an illustration, Vice President Biden may be responsible for overseeing the expiration of a twenty percent tax deduction for particular revenue generated bypass-through businesses, such as sole proprietorships, which file their taxes via a personal owner. Those businesses would be subject to an increase in their taxes as a direct result of the initiative.
On the other hand, Biden might implement a wealth tax that is the first of its kind, and he would focus on high-net-worth individuals.
In the previous year, Vice President Biden presented a tax plan for the year 2024 that included a tax of 25% on the wealth of persons whose net worth was greater than $100 million. According to Biden, the strategy would cater to 0.01% of the American population.
In the State of the Union address that he gave the previous year, Vice President Biden stated, “I am a capitalist, but pay your fair share.”
It is possible that such a tax increase will not be passed by the existing divided Congress; however, if Biden is awarded a second term, he may pursue it.
Despite the fact that the Biden campaign has not yet presented a plan for trade policy during a second term, his government has, up to this point, adopted a combative stance toward some countries that are considered to be adversaries, such as China, while simultaneously establishing trade agreements with other countries.
The tariffs that President Trump had imposed on Chinese goods were maintained by Vice President Joe Biden, who escalated the conflict with China by taking other measures, such as prohibiting the shipment of advanced chips to China.
Nevertheless, in recent years, the United States of America has achieved trade deals with Taiwan and Japan, two countries that are located in close proximity to the United States. Over the course of December, the government of Vice President Joe Biden prolonged a suspension of tariffs imposed under the Trump administration on steel and aluminum imported from Europe. However, the White House has established a permanent accord to eliminate the charge.
What you need to know about Vermont’s wealth tax is listed here.
To his own advantage, Trump intends to intensify the aggressive trade strategy that he implemented during his first term in office, and he has pledged to slap tariffs on the majority of goods that are imported.
During an interview with Fox Business in August, President Trump stated that the tax on imported goods might eventually be set at ten percent.
Additionally, according to a set of measures that were made public in February, Trump intends to impose restrictions on products that are manufactured in China. These restrictions will include a “four-year plan to phase out all Chinese imports of essential goods.”
Manufacturing and employment opportunities
The two contenders present themselves as job creators who are committed to fostering the expansion of manufacturing in the United States. On the other hand, they have utilized a variety of ways in order to accomplish this.
In order to ensure a vibrant employment market and a strengthened domestic supply chain, the Trump campaign has pitched its tariff strategy as a means of defending businesses in the United States.
“Trump wants jobs here in America,” Moore pointed out. “He wants things made in America.”
The federal law that has been adopted by the Biden administration, on the other hand, has brought investment to companies in the United States, which in turn has increased the demand for workers.
Treasury Secretary Janet Yellen, while speaking at the Economic Club of Chicago the previous week, referred to a number of measures that were signed into law by Vice President Joe Biden. These measures have resulted in increased investment in projects that are focused on infrastructure, computer chips, and sustainable energy.
“These investments will fuel our economic growth and increase our economic security,” stated Governor Yellen.