If re-elected, Donald Trump has publicly announced prospective tax reductions for all citizens and businesses, distinctly differing from Joe Biden’s proposal for enhanced taxes on corporations and the affluent.
Arguing that such cuts would boost economic growth, create jobs, and encourage more significant investment in the US economy, Trump fears Biden’s planned tax hikes may undermine economic recovery and business activity.
The result of the presidential election will directly influence the future of Trump’s previous personal income tax reductions; passage of these by Congress will offer continued financial relief for individuals and families nationwide. However, should they expire, some may face tax increases, creating uncertainty in the lead-up to the election.
Biden’s plan would remove tax cuts for households earning over $400,000 annually and increase taxes on high-income individuals and major corporations.
Comparing Trump’s and Biden’s tax plans
Projections show that without extension, allowances like estate tax and a business owner’s deduction, slated to expire at year-end, may require top earners to pay more tax and thus ignite disputes over tax reform needs and influence on wealth inequality.
Despite a lack of detail surrounding Trump’s tax strategy in the event of re-election, he points to his intent for sweeping cuts for those with high incomes and companies, which critics suggest may exacerbate wealth disparity and exert pressure on middle-income taxpayers.
In recent discussions, Trump appears to have shifted from his previous support for reducing the corporate tax to 15% to support maintaining the existing 21% corporate tax rate and continuing personal tax cuts.
