As the 2024 presidential election draws near, economic policy has emerged as a central issue for voters, particularly for those in the middle class. Both Republican and Democratic candidates are presenting their visions for the future of the U.S. economy, each offering distinct approaches to taxes, jobs, and the cost of living. The middle class — often defined as households earning between $50,000 and $150,000 per year — is particularly invested in these debates, as their financial well-being and prospects for upward mobility may be most directly impacted by the next administration’s policies.
This article provides an overview of the key economic and tax policies proposed by both Donald Trump and Kamala Harris, with a focus on how these measures are likely to affect middle-class Americans.
Differing Approaches to Income and Corporate Taxes
One of the key distinctions between Trump and Harris is their approach to taxes, particularly for middle-income households and corporations.
Donald Trump is advocating for maintaining the lower corporate tax rates enacted during his previous administration, arguing that reducing taxes on businesses promotes investment and job creation. His economic philosophy centers on the idea that tax cuts for corporations and wealthy individuals will eventually benefit all Americans, including the middle class, through job growth and stronger economic performance. Trump also favors preserving the individual income tax cuts that were passed under his administration, which provide modest benefits to middle-income earners.
In contrast, Kamala Harris is proposing targeted tax cuts for middle-class families, coupled with tax increases on corporations and the wealthy. Harris’s plan includes expanding tax credits like the Child Tax Credit and Earned Income Tax Credit to help middle-class families with the rising costs of living. For households earning under $150,000, Harris aims to ease financial pressure by providing more direct benefits. At the same time, she plans to raise taxes on individuals making over $400,000 and increase corporate tax rates, using the revenue to fund expanded social programs and reduce the national deficit.
For the middle class, the impact of these tax policies could vary. Trump’s approach relies on the hope that lower corporate taxes will lead to economic growth and indirectly benefit middle-class workers. On the other hand, Harris’s strategy provides more immediate relief through tax credits but increases the tax burden on corporations and high-income earners to fund broader government initiatives.
Job Creation and Wage Growth
Job creation and wage growth are key concerns for middle-class voters, and both candidates have outlined strategies to improve these areas, though they approach the issues differently.
Donald Trump emphasizes a market-driven approach, advocating for reduced regulations and lower taxes on businesses to encourage investment and expansion. He believes that by giving businesses more flexibility, they will create jobs and increase wages, benefiting middle-class workers. Trump’s track record from his first term in office highlights his focus on deregulation, particularly in industries like energy and manufacturing, as a way to stimulate economic growth.
Kamala Harris advocates for more direct government intervention in job creation, with a focus on infrastructure, renewable energy, and healthcare. Harris’s plan includes significant investments in clean energy technologies and infrastructure projects, which she claims will create millions of high-paying jobs. She also supports raising the federal minimum wage to $15 per hour, which could benefit lower-wage workers but might raise concerns for middle-income earners working in businesses affected by wage hikes, as well as small business owners. Harris also backs stronger union protections and labor laws, arguing that empowering unions will help middle-class workers secure better pay and benefits.
For middle-class workers, Trump’s strategy may yield longer-term benefits through job creation driven by business investment, while Harris’s approach offers opportunities through government-backed programs and wage increases.
Healthcare and Cost of Living
The cost of healthcare and the overall cost of living are pressing issues for the middle class, and both candidates offer distinct solutions to address these challenges.
Kamala Harris is pushing for significant healthcare reform, including a public option that would allow Americans to choose between private insurance and a government-run alternative. This could reduce healthcare premiums and out-of-pocket costs for many middle-class families. Harris also supports capping prescription drug prices and increasing investment in affordable housing programs to address rising costs in urban areas.
Donald Trump, on the other hand, supports maintaining the current private healthcare system, with a focus on reducing regulations to foster competition among insurance providers. He believes that deregulation will lower healthcare costs over time by encouraging innovation. Trump also opposes government intervention in housing markets, instead advocating for reduced zoning regulations to encourage private-sector housing development, which he argues will help reduce housing costs by increasing supply.
It’s yet to be determined how long either of these plans will take to yield noticeable results.
Education and Family Benefits
Another area where the two candidates diverge is in their approach to education and family benefits, both of which are critical for middle-class families seeking to secure a stable future.
Kamala Harris claims to have a comprehensive plan to expand access to affordable education, including tuition-free community college and increased funding for childcare programs. These policies are said to be designed to reduce the financial burden on middle-class families and improve access to education. Harris also supports expanding paid family leave, which would make it easier for working parents to balance their professional and personal responsibilities.
Donald Trump prefers a less government-intensive approach, advocating for education tax credits and school choice initiatives that allow parents more control over their children’s education. Trump’s plan also includes incentives for personal savings for education and childcare, rather than large-scale government programs. His focus is on giving middle-class families more autonomy over their financial decisions, particularly when it comes to education.
Conclusion
The 2024 election offers voters two very different economic visions. Donald Trump’s policies are centered on lower taxes and deregulation, with the belief that businesses will drive economic growth that benefits middle-class families in the long run. Kamala Harris, by contrast, is focused on direct government intervention through expanded tax credits, healthcare reform, and investments in job-creating industries like renewable energy.
For middle-class Americans, choosing between these economic policies may come down to their views on the role of government in managing the economy and the trade-offs they are willing to accept between short-term benefits and long-term growth. Ultimately, the impact on the middle class will depend on how these policies are implemented and how the broader economy responds over the next four years.
