Trump's 'Tariff Strengthening Tips Exemption' Harris's 'Capital Gains Tax' TV Economic Debate
Trump's 'tariff'-led policy and Harris's 'capital gains tax' became the economic issue in the TV debate.
The debate between Vice President Kamala Harris and former President Donald Trump on the 11th began with a debate on the economy, and the two candidates sharply clashed over recent inflation in the United States, Trump's tariff hike plan, and the economic policy that Vice President Harris announced on the 6th.
Vice President Harris focused her attacks on the "Trump sales tax" and attempted to attack during the debate, saying, "The other candidate has a plan called the Trump sales tax, which is a 20% tax on everyday items that we rely on to get through the month." Republican candidate Trump announced last year that he could impose a 10% tax on all imports, and in April, he led the “tariff policy” by proposing a high tariff rate of at least 60% on Chinese products.
Democratic candidate Harris announced an economic platform on the 6th to reduce inflation, fix the housing market, and lower taxes for middle-class families.
The Democratic candidate’s new plan includes a ban on food price gouging, a $25,000 subsidy for first-time homebuyers, and the restoration of the expanded child tax credit of $3,600 per child that expires in 2022.
In addition, Vice President Harris proposed an additional $6,000 child tax credit for families with children under the age of 12 as a tax cut policy.
The New York Times reported on the 10th, “It’s been more than five years since former President Trump called himself ‘Tariff Man,’ but his passion for tariffs seems to have only grown stronger since then.” “He has long argued that imposing tariffs on foreign products can protect American factories, narrow the gap between American exports and imports, and force uncooperative foreign governments to submit. During his presidency, he used the threat of tariffs to persuade Mexico to stem the flow of illegal immigrants crossing the U.S. border and persuaded China to sign a trade deal with the United States,” it said of his “tariff-led policy.”
The New York Times reported on the 10th, “But in recent weeks, President Trump has made much broader claims about the power of tariffs, including that they will help support child care costs, fight inflation, fund the U.S. sovereign wealth fund, and maintain the dollar’s preeminent role in the global economy. Economists are skeptical of many of these claims.”
The Times added, “Tariffs do generate some revenue, but in many cases they may generate only a fraction of the funds needed to achieve some of the goals Trump has outlined, and they could actually backfire on the U.S. economy by provoking retaliation from foreign governments and raising costs for consumers. And the costs of tariffs tend to be borne by American businesses and households rather than foreign ones.” Regarding Harris's "middle-class subsidy," which Trump attacked as "Marxism," the New York Times reported on the 10th that "economists have warned that the subsidy proposed by Vice President Harris could further drive up housing prices at a time when the Federal Reserve has been trying to control inflation," and that "they worry that such benefits will lead to more competition for the already limited supply of housing, which will drive up prices."
Targeting this, Trump attacked the Democratic policy during the TV debate, saying, "We are experiencing inflation that only a very small number of people have ever seen before. It may be the worst in the history of our country."
On the 11th, Harvard economist Jeffrey Frankel told ABC News about Trump's remarks, saying, "The biggest cause of inflation is the supply adjustment in response to the coronavirus shock, especially isolation."
ABC said, “Economists say that pandemic-era spending measures enacted by Trump and Biden may have also contributed to the surge in prices,” and “Michael Strain of the conservative American Enterprise Institute estimates that the bill adds 3 percentage points to inflation,” diagnosing it as a “limited impact.”
During the debate, Trump criticized Harris’s economic policies as “lacking specificity,” saying, “She doesn’t have a plan. She copied Biden’s plan. And it’s four sentences, for example, run-Spot-run. Just, oh, we’re going to try to lower taxes.”
ABC News reported that day that some economists interviewed, “Economists agreed that Vice President Harris does not have a complete economic plan,” adding, “But President Trump has not put forth specific policy proposals on economic issues either.”
“I would like to see more detailed policy proposals from both candidates,” said Anne Villamil, an economics professor at the University of Iowa. “In the case of Vice President Harris, I would like to know how her policies would differ from the current ones. "I want to know how Trump's policies will differ from those of the previous administration," he commented on ABC News.
Ahead of the TV debate, Vice President Harris announced a policy to reduce inflation, improve the housing market, and cut taxes for middle-class families, adding a $25,000 subsidy for first-time homebuyers and a "ban on food price gouging" that is different from the Biden administration.
Democrat Harris has shifted to a 28% tax on long-term capital gains, a much lower rate than the 39.6% rate on capital gains under Biden.
Trump's Republican Party has announced a renewal of the Republican tax cuts for individuals and corporations, and has added a new platform to "eliminate taxes" on tips from restaurants and other businesses and on Social Security benefits.