THE ECONOMY: WHAT ARE THEY PROPOSING?

(ema 9/25/24) The candidates' economic proposals came into sharp definition on Sept. 25, 2024 when they held competing events focusing on the economy.  Harris spoke at the Economic Club of Pittsburgh [C-SPAN] and Trump at Mosack Group in Mint Hill, NC [C-SPAN].  The Harris campaign also released an 82-page policy book "A New Way Forward for the Middle Class." [PDF]

A major issue on many people's minds is inflation (2), which spiked at 9.1% in June 2022 and has fallen to about 2.5% in Aug. 2024 ("12 month percentage change...not seasonally adjusted").  As the saying goes, "Inflation is taxation without legislation."  Although inflation has fallen substantially, its effects are still very noticeable on a trip to the grocery store or gas station.  The unemployment rate is also a closely watched number: it stood at 4.2% in August or about 7.1 milion people unemployed compared to 3.8% and 6.3 million a year earlier.  There are many other numeric indicators of the health of the economy, for example real earnings, household debt, labor force participation, productivity, and income inequality.  Housing affordability is another major issue which is much in the news.  (This contributes to the homelessness problem.  The solution in many communities has been to emphasize building affordable rental units, as distinct from affordable homes).  Another number cited relatively frequently, is consumer confidence, which measures people's perceptions of the economy looking ahead.  However, mere numbers do not tell the whole story; ideally policies should address people's quality of life, including factors such as crime, disease prevalence, a clean environment, time spent stuck in traffic, and general happiness.

The major party candidates have primarily proposed a variety of tax credits and tax cuts, which will help everything from the new parents to small businesses the manufacturing sector.  Trump has put a lot of proposals out, including extending the tax cuts from the 2017 Tax Cuts and Jobs Act, high tariffs on Chinese imports, "no tax on tips," ending taxation of Social Security benefits, lowering the corporate tax rate to 15%, and ending taxes on overtime.  He also proposes cutting ten regulations for every new regulation and unleashing American energy production.  Trump and his campaign say these proposals will make America wealthy again.  Harris' proposals, grouped under the notion of creating an "opportunity economy," include a middle class tax cut, including $6,000 for new parents, a homebuilder tax credit to build three million new homes, plus a tax credit for a down payment on a first home, and an expanded tax deduction for new businesses; she has also said she would raise the corporate tax rate to 28%.

Neither candidate talks much about simplifying the tax code or about the effects of their proposals on the national debt, which stands at $35.3 trillion and growing.

See also:
US Budget Watch 2024, a project of the Committee for a Responsible Federal Budget

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Harris for President

[PDF]

Vice President Harris in Major Pittsburgh Economic Speech: ‘We Need to Grow Our Middle Class’

Today, in a major address in Pittsburgh laying out her vision for the economy and her economic philosophy, Vice President Kamala Harris vowed to “grow America’s middle class” and build an “opportunity economy” focused on lowering costs, investing in innovation, and winning the industries and creating the manufacturing jobs of the future.

She contrasted her optimistic vision to build the middle class, which she grew up in, with Donald Trump’s plan to look out only for himself and billionaires like him. Trump “has no intention of growing our middle class. He’s only interested in making life better for himself,” she said. “For Donald Trump, our economy works best if it works for those who own the big skyscrapers. Not those who build them. Not those who wire them. Not those who mop the floors.

"I have a different vision for our economy,” she declared. “I believe we need to grow our middle class.”

Below is a transcript of Harris’ remarks, as prepared for delivery:


Good afternoon.


Andrea, thank you for that introduction and for your leadership.


Thank you to Risa and the Economic Club of Pittsburgh  for hosting today.


And I also want to thank Mayor Ed Gainey for joining us.


We gather at a moment of great consequence.

In this election, we have an extraordinary opportunity.


To make our middle class the engine of America’s prosperity.


To build a stronger economy where everyone has a chance to chase their dreams and aspirations.


And to ensure that the United States of America  continues to out-innovate and out-compete the world.


Over the past three and a half years, we have taken major steps forward to recover from the public health and economic crisis we inherited.

Inflation has dropped faster here than the rest of the developed world.


Unemployment is near record lows.


We have created almost 740 thousand manufacturing jobs—including 650 at the battery manufacturing plant over in Turtle Creek.


And we have supported another 15 thousand jobs at Montgomery Locks.

Last week, for the first time in four and a half years, the Federal Reserve cut interest rates, which will make it a little easier for families to buy a home. Or a car. Or pay down their credit card bill.

But let’s be clear: for all these positive steps, the cost of living in America is still too high.


You know it, and I know it.


And that was true long before the pandemic hit.

Many Americans who aspire to own a home are unable to save enough for a down payment on a house. And starting to think that maybe home ownership isn’t within their reach.

Folks who live in factory towns and rural communities who have lost jobs, are wondering if those jobs will ever come back.

Many Americans are worried about how they’ll afford the prescription drugs they depend on.

And all of this is happening at a time when many of the biggest corporations continue to make record profits while wages haven’t kept pace.

I understand the pressures of making ends meet.


I grew up in a middle class family.


And while we were more fortunate than many, I still remember my mother sitting at that yellow Formica table.


Late at night. Cup of tea in hand. A pile of bills in front of her.


Trying to make sure she paid them off by the end of the month. Trying to make it all work.

Every day, millions of Americans are sitting around their own kitchen tables. And facing their own financial pressures.


Because over the past several decades, our economy has grown better and better for those at the very top.And increasingly difficult for those trying to attain, build and hold on to a middle-class life.

In many ways, that is what this election is about.


The American people face a choice between two fundamentally different paths for our economy. 


I want to chart a New Way Forward. And grow America’s middle class. 


Donald Trump intends to take America backward. To the failed policies of the past.


He has no intention of growing our middle class.


He’s only interested in making life better for himself.


And people like himself. The wealthiest of Americans. 


You can see it spelled out in his economic agenda.


An agenda that gives trillions of dollars in tax cuts to billionaires and big corporations. While raising taxes on the middle class by almost $4,000 a year. Slashing overtime pay. Throwing tens of millions of Americans off health care. And cutting Social Security and Medicare.


In sum, his agenda would weaken the economy and hurt working- and middle-class people.

For Donald Trump, our economy works best if it works for those who own the big skyscrapers.


Not those who build them. Not those who wire them. Not those who mop the floors.

Well, I have a different vision for our economy.


I believe we need to grow our middle class and make sure our economy works for everyone.


For people like those in the neighborhood where I grew up. And the hardworking Americans
I meet across our nation.


I call my vision, the Opportunity Economy.


And it’s about making sure everyone can find a job and more.


I want working Americans and families to be able to not just get by. But be able to get ahead. To thrive.


I don’t want you to have to worry about making your monthly rent if your car breaks down.


I want you to be able to save up for your child’s education.


Take a vacation once in a while.


And buy Christmas presents for your loved ones without feeling anxious looking at your bank account. I want you to be able to build up some wealth.


Not just for yourself.

But for your children and grandchildren. And here’s the thing.


We know how to build an economy like that.


We know how to unlock strong, shared economic growth for the American people.


History has shown it. Time and again.

When we invest in those things that strengthen the middle class—manufacturing, housing, health care, education, small businesses, and our communities—we grow our economy and catalyze the entire country to succeed.


I have pledged that building a strong middle class will be a defining goal of my presidency.


And the reason is not about politics or ideology.


It’s just common sense. It’s what works.


When the middle class is strong, America is strong.


And we can build a stronger middle class.


The American economy is the most powerful force for innovation and wealth creation in human history. We just need to move beyond the failed policies of the past.


And, like generations before us, be inspired by what’s possible.


As President, I’ll be grounded in my fundamental values of fairness. Dignity. And opportunity.


And pragmatic in my approach.


I’ll engage in what Franklin Roosevelt called “bold, persistent experimentation.”


I believe we shouldn’t be constrained by ideology.


We should seek practical solutions to problems. Realistic assessments of what’s working and what’s not.


And stay focused. Not only on the crises at hand. But on our big goals.


On what’s best for America over the long term.


And part of being pragmatic means taking good ideas from wherever they come.


I am a devout public servant. And I also know the limitations of government.


I’ve always been and always will be a strong supporter of workers and unions.


I also believe we need to engage those who create most of the jobs in America.


Look, I am a capitalist. I believe in free and fair markets.


And consistent and transparent rules of the road to create a stable business environment.


And I know the power of American innovation.


I’ve been working with entrepreneurs and business owners my whole career.


And. I believe companies need to play by the rules. Respect the rights of workers and unions. And abide by fair competition.


If they don’t, I will hold them accountable.


And if anyone has any doubt about that, just look at my record as Attorney General in California.


Taking on: Big banks for predatory lending. Big health care companies for conspiring to jack up prices. And big, for-profit colleges for scamming veterans and students.


At the same time, I believe that most companies are working hard to do right by their customers and the employees who depend on them.


And we must work with them to grow our economy.


I believe an active partnership between government and the private sector is one of the most effective ways to fully unlock economic opportunity.


And that’s what we will do when I am President.


We will target the major barriers to opportunity.


And remove them.


We will identify common sense solutions to help Americans buy a home.


Start a business. And build wealth.


And we will adopt them.


Let’s start with the first pillar of the Opportunity Economy.


Lowering costs.


I made that our top priority because if we want the middle class to be the growth engine of our economy, we need to restore basic economic security for middle class families.


To that end, the most practical thing we can do right now is to cut taxes for the middle class.


So that’s what we will do.


Under my plan, more than 100 million Americans will get a middle class tax break.


That includes $6,000 for new parents during the first year of a child’s life.


To help families cover everything from car seats to cribs.


And we’ll also cut the cost of childcare and elder care.


And finally give all working people access to paid leave.


Which will help everyone caring for children, caring for aging parents, and the sandwich generation caring for both.


I have personal experience with caregiving. I remember being there for my mother when she was diagnosed with cancer.


Cooking meals for her. Taking her to her appointments. Trying to make her comfortable. And telling her stories.


I know caregiving is about dignity.


And when we lower the costs, and ease the burdens people face.We not only make it easier for them to meet their obligations as caregivers.


We also make it more possible for them to go to work, and pursue their economic aspirations.


And when that happens, our economy as a whole grows stronger.


Now, middle class tax cuts are just the start of my plan.


We will also go after the biggest drivers of costs for the middle class. And work to bring them down.

One of those big costs is housing.


So here is what we will do.


We will cut the red tape that stops homes from being built.


Take on corporate landlords who are hiking rental prices.


And work with builders and developers to construct 3 million new homes and rentals for the middle class.


Because increasing the housing supply will help drive down the cost of housing.


We will also help first-time homebuyers get their foot in the door with a $25,000 down payment assistance.


So more Americans can afford to buy a home. A critical step in building wealth.


And we will work to reduce other big costs for middle class families.


We will take on bad actors who exploit emergencies to drive up grocery prices. By enacting the first-ever federal ban on corporate price gouging.


And take on Big Pharma to cap the cost of prescription drugs for all Americans.


Just like we did for seniors.


By contrast, Donald Trump has no intention of lowering costs for the middle class.


In fact, his economic agenda would actually raise prices.


And that’s not just my opinion.


A survey of top economists by the Financial Times and University of Chicago found that by an overwhelming 70 to 3 percent margin, my plan would be better for keeping inflation low.


The second pillar of the Opportunity Economy is investing in American innovation and entrepreneurship.


For the last century, the United States of America has been a beacon around the world.


Not only for our ability to come up with some of the most breakthrough ideas.


But our ability to turn those ideas into some of the most consequential innovations the world has ever known.


I believe the source of our success is the ingenuity, dynamism, and enter-prising spirit of the American people.


To paraphrase Warren Buffett: Since our founding as a nation, “there has been no incubator for unleashing human potential like America.”


And we need to guard that spirit.


Including by solving the problems that small business owners face.


As I travel the country, what I hear time and again from those who own small businesses, and those who aspire to start them, is that too often, an entrepreneur has a great idea.


And the willingness to take the risk.


But they don’t have access to the capital to make it real.


Well, we can make it easier for them to access capital.


On average, it costs about $40,000 to start a new business. But currently, the tax deduction for startup costs is only $5,000.


In 2024, it’s almost impossible to start a business on $5,000.


That’s why, as President, I will make the startup deduction ten times richer.


We will raise it from $5,000 to $50,000.


And provide low- and no-interest loans to small businesses that want to expand.


All of which will help achieve our ambitious goal of 25 million new small business applications by the end of my first term.

Small businesses help drive our economy.


They create nearly 50 percent of private sector jobs. And they strengthen our middle class.


And if we can harness the entrepreneurialism of the American people, and unlock the full potential of aspiring founders, and small business owners, I am optimistic no one will ever outpace us.


By contrast, when Donald Trump was President, one of the nation’s leading experts on small businesses published a piece in a major paper. The title, “Does Donald Trump hate small businesses?” Their answer was yes.


Because at the same time Donald Trump was giving a tax cut to big corporations and billionaires, he tried to slash programs for small businesses.


And raise borrowing costs for them.


Instead of making it easier, he actually made it more difficult for them to access capital.


And that’s not surprising.


Because Donald Trump does not prioritize small businesses. He does not seem to value the essential role they play. 


Well, when I look at small business owners, I see some of the heroes of our economy.


Not only entrepreneurs.


But civic leaders.


I see the glue that holds our communities together.


The third pillar of the Opportunity Economy is leading the world in the industries of the future.


And making sure America—not China—wins the competition for the 21st Century.

One of the recurring themes of American history is that when we make an intentional effort to invest in our industrial strength, it leads to extraordinary prosperity and security.


Not only for years. But for generations.


Think of Alexander Hamilton having the foresight to build the manufacturing capabilities of our new nation.


Lincoln and the transcontinental railroad.


Eisenhower and the interstate highway system.


Kennedy, committing America to win the space race and spurring innovation across our society.


From our earliest days, America’s economic strength has been tied to our industrial strength.


The same is true today.


So, I will recommit the nation. To global leadership in the sectors that will define the next century.


We will invest in biomanufacturing and aerospace.


Remain dominant in AI, quantum computing, blockchain, and other emerging technologies.


Expand our lead in clean energy innovation and manufacturing.So the next generation of breakthroughs—from advanced batteries to geothermal to advanced nuclear—are not just invented, but built here in America by American workers.


And we will invest in the industries that made Pittsburgh the Steel City, by offering tax credits for expanding good union jobs, in steel, iron, and manufacturing communities like here in Mon Valley.


And across all these industries of the future, we will prioritize investments for: Strengthening factory towns. Retooling existing factories. Hiring locally. And working with unions.


Because no one who grows up in America’s greatest industrial or agricultural centers should be abandoned.


And here is what else we will do when I am President.


We will double the number of registered apprenticeships by the end of my first term.


Eliminate degree requirements while increasing skills development for half a million federal jobs.


And challenge our private sector to make a similar commitment to emphasizing skills, not just degrees.


We will reform our tax laws to make it easier for businesses to let workers share in their company’s success.


And I will challenge the private sector to do more to lift up workers through equity, profits, and benefits. So more people can share in America’s success.


Not only must we build the industries of the future in America.


We must build them faster.


The simple truth is, in America, it takes too long and costs too much to build.


Whether it’s a new housing development, a new factory, or a new bridge, projects take too long to go from concept to reality. 


It happens in blue states and red states. And it’s a national problem.


I will tell you this. China is not moving slowly. And we can’t afford to, either.


As President, if things are not moving quickly, I will demand to know why.


And I will act. I will work with Congress, workers and businesses, cities and states, community groups and local leaders, to reform permitting.


Cut red tape. And get things moving faster.


Patience may be a virtue. But not when it comes to job creation. Or America’s competitiveness.


The Empire State Building was built in a year.


The Pentagon, 16 months.


No one can tell me we can’t build quickly in our country.


Now, Donald Trump makes big promises on manufacturing.


Just yesterday, he went out and promised to bring back manufacturing jobs.


If that sounds familiar, it should. In 2016, he went out and made that very same promise about the Carrier plant in Indianapolis. You’ll remember, Carrier then offshored hundreds of jobs to Mexico under his watch.


And it wasn’t just there. On Trump’s watch, offshoring went up, and manufacturing jobs went down across our economy.


All told, almost 200,000 manufacturing jobs were lost during his presidency, starting before the pandemic hit.


Making Trump one of the biggest losers ever on manufacturing.


Donald Trump also talked a big game on our trade deficit with China. But it is far lower under our watch, than any year of his Administration.


While he constantly got played by China, I will never hesitate to take swift and strong measures when China undermines the rules of the road at the expense of our workers, our communities, and our companies—whether it’s flooding the market with steel.


Unfairly subsidizing ship-building. Or hurting our small businesses with counterfeits.


Recall Donald Trump actually shipped advanced semiconductor chips to China to upgrade their military.


I will never sell out America to our competitors or adversaries.


I will always make sure we have the strongest economy and most lethal fighting force of any nation in the world.


At this pivotal moment, we have an extraordinary opportunity. To chart a New Way Forward. One that positions the United States of America—and all of us blessed to call this home—for success and prosperity in the 21st Century.


There is an old saying, that “The best way to predict the future is to invent it.”


Well, that is the story of the Steel City.


The city that helped: Build the middle class. Birth America’s labor movement. And power the rise of American manufacturing.


And the city where Allen Newell and Herbert Simon launched the first AI research hub at Carnegie Mellon.


And created entirely new fields. Like machine learning. And Carnegie Mellon is now home to the largest university robotics center in America.


The proud heritage of Pittsburgh reveals the character of our nation.


A nation that harnesses the ambitions, dreams, and aspirations of our people.


Seizes the opportunities before us. And invents the future.


That is what we have always done. And that is what we must do now.


Thank you again for inviting me.


God bless you. And may God bless the United States of America.

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Democratic National Committee
September 25, 2024

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Donald J. Trump for President 2024, Inc.

September 25, 2024
Contact: Tommy Pigott and Taylor Rogers, Team Trump

A VOTE FOR TRUMP IS A VOTE FOR “MADE IN AMERICA” – The contrasting economic visions of Kamala Harris and President Trump were on full display today.

Though the word “vision” is too nice a word for what Kamala “offers” – which is only doubling down on the worst failed policies of the last 3.5 years. Today in North Carolina, President Trump once again laid out his plan to usher in a new golden age of American manufacturing and industrialism.



President Trump’s plan is commonsense. Let’s look at the facts:

• President Trump will enact a 15% Made in America Tax Rate, cutting the business tax from 21% to 15%, but only for those who make their product in the USA. Kamala will demand a tax hike on all domestic production and enact a tax on unrealized gains.

• President Trump will appoint a Manufacturing Ambassadorwhose sole directive will be to go around the world and convince major manufacturers to pack up and move their production to America. The Harris-Biden administration appointed a Green New Deal Czar, repeatedly told manufacturing and energy workers to “transition” to new jobs, and touted job creation in other countries.

• President Trump will cut ten regulations for every new regulation. Kamala has added as much as $6,300 per year in new regulatory costs onto the backs of every American family.

• President Trump will lower taxes for working Americans, and eliminate taxes on tips, overtime, and Social Security. Kamala wants to increase taxes on working Americans by eliminating the Trump Tax Cuts.

• President Trump will unleash American energy production and make our country energy dominant. Kamala has waged war on American energy, supports the job-killing Green New Deal, and has overseen record high gas and electricity prices.

That’s just the start. And as President Trump lays out his plans, Comrade Kamala thinks “Bidenomics is working” even as 24,000 manufacturing jobs were lost last month. As President Trump said, “Kamala Harris is a one-woman economic wrecking ball.”

Ultimately, Comrade Kamala’s plan will lead to increased costs, higher taxes, and lower real wages. President Trump’s plan will Make America Wealthy Again! For more information on how Comrade Kamala’s “plan” is a death knell for American manufacturing, click here.

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Donald J. Trump for President 2024, Inc.
September 25, 2024
"Kamala Harris is right about one thing — it’s time to turn the page. She’s had three and a half years to prove herself, and she has failed. Personal savings are down, credit card debt is up, small business optimism is at a record-low, and people are struggling to afford homes, groceries, and gas. Every time Kamala speaks, it becomes increasingly clear that ONLY President Trump will Make America WEALTHY Again.” - Karoline Leavitt, Trump Campaign National Press Secretary

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Repubican National Committee
September 25, 2025

RNC STATEMENT ON KAMALANOMICS DEVASTATING THE MANUFACTURING AND ENERGY INDUSTRY

WASHINGTON – Today, Republican National Committee (RNC) Chairman Michael Whatley released a statement on Kamala Harris’ economic remarks in Pennsylvania:

“Kamala Harris’ policies have destroyed the American economy, starting with her tie-breaking votes on the $1.9 trillion stimulus and so-called ‘Inflation Reduction Act’ and continuing with her extreme EV mandates and radical climate policies which threaten our oil and gas industries. Harris’ dangerously liberal agenda has damaged our economy for the last three and a half years, and our manufacturers, energy industry, and working Americans in Pennsylvania and across the country cannot survive another four years of Kamalanomics.”

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Graphics from the Harris and Trump facebook pages, Sept. 24, 2024.