In the field of tax policy – especially in relation to Donald Trump’s tax reduction plans – along with some other prominent issues, such as abortion and immigration, the bloodiest clashes are expected during this year’s US presidential election, reports the overseas NBC News news portal.
Donald Trump’s tax cuts
In addition, it is an interesting coincidence that Trump’s previous tax cuts – which were adopted during his presidency, more precisely in 2017 – will expire at the end of 2025, so the winner of the presidential election will be able to decide what their future fate will be in addition to Congress. The Grand Old Party (GOP) presidential candidate left no doubt about his plans, in a recent consultation with wealthy donors, he unequivocally stated that he would extend “the Trump tax cuts” if elected.
Moreover, during a hearing of the GOP-dominated House Ways and Means Committee, Republicans emphasized that they would extend the success of the 2017 Tax Cuts and Jobs Act (TCJA).
According to Trump’s tax plans, lower tax rates would remain throughout the income spectrum, but the biggest benefits in absolute terms would by definition still go to the highest earners.
Joe Biden’s plans
Joe Biden, the current US president and Democratic presidential candidate, on the other hand, attacked the law as a gift to the richest Americans and repeatedly vowed that “big corporations and the very rich will finally pay fair taxes.”
By the way, the president previously also supported the increase of the American corporate income tax rate from 21 percent to 28 percent, but he stated that the taxes of citizens earning less than $400,000 a year would not increase by a cent – at least at the federal level.
Biden also calls for a $3,600 per child tax cut for families and an $800 average tax break for “front-line workers,” those who deal directly with customers. In addition, a 25 percent minimum tax would be imposed on billionaires, according to a recently published campaign draft.
A battle of arguments
According to Democrats, the Republican tax policy would only help the richest, while the US national debt would also swell.
Trump and the GOP, on the other hand, argue that after the tax burden was reduced in 2017, America had such strong years in 2018 and 2019 that wages and investments stagnated markedly, and prosperity was only hampered by the coronavirus epidemic end
According to them, the country’s debt growth and budget deficit are not fueled by the GOP’s tax cuts anyway, but by runaway spending.
