With two days left until the election on November 5, the American people will soon decide who will be the 47th President of the United States: current Vice President Kamala Harris or former President Donald Trump.
Both candidates have made several policy promises that could significantly affect not only the U.S. but also the entire world for years to come. To help understand the impact of their policies, we compare their positions on five key issues that could influence economic and financial markets.
Tax Policies
Vice President Harris has proposed raising the corporate tax rate from the current 21% to 28%, while former President Trump aims to reduce it to 15%. Regarding individual taxes, Harris plans to increase the income tax rate for those earning over $400,000, contingent upon the expiration of the 2017 Tax Cuts and Jobs Act (TCJA). Meanwhile, Trump seeks to establish the current tax rates permanently.
Trade Policies
On trade, particularly tariffs on China, Trump has proposed implementing significant tariffs on imports, with rates potentially reaching up to 60% for certain goods from China. In contrast, Harris has expressed support for the Biden administration’s plan, which includes more targeted tariffs on China. Still, both candidates show a protectionist tone during their campaign.
Regulatory Differences
Harris aims to double the federal minimum wage to $15 from the current $7.25 per hour, support relief for student debt, and crack down on anti-competitive practices. Conversely, Trump seeks to eliminate regulations that support environmental initiatives, improve the climate for mergers and acquisitions, and has proposed reissuing “Schedule F,” which would allow him to fire federal employees more easily.
Health Care Policies
Both candidates aim to reduce drug prices. Democrats seek to expand the number of drugs eligible for negotiation under Medicare and include private-sector drugs in the Medicare inflation cap. Conversely, Republicans plan to reduce Medicaid spending and payments to hospitals for outpatient care.
Immigration
Both candidates advocate for tighter control measures. However, Harris demands an “orderly and humane pathway to earned citizenship for hardworking individuals.” Trump, on the other hand, has promised the largest deportation effort in U.S. history and has proposed deploying National Guard troops and regular military personnel if necessary.
