**Financial Flashpoints in the Trump-Biden Debate**
The upcoming debate between former President Donald Trump and President Joe Biden is expected to touch on crucial financial issues that impact the average American’s pocketbook. With topics ranging from taxes to inflation to tariffs on foreign goods, both candidates have distinct approaches that could shape the economic landscape for years to come.
**Taxes: A Key Economic Issue**
One of the central economic issues at stake in the presidential race is the fate of the 2017 Tax Cuts and Jobs Act. Many provisions of this law are set to expire in 2026, potentially reverting the tax code to its pre-2017 state. The distribution of benefits from making these tax cuts permanent heavily favors the top 5% of earners, those making $400,000 or more annually.
Joe Biden has made clear his stance on taxes, promising not to raise taxes on individuals earning less than $400,000 per year. He also intends to let the remaining provisions of the Tax Cuts and Jobs Act expire while proposing higher taxes on corporations and top earners.
In contrast, Donald Trump reportedly plans to eliminate the federal income tax altogether and replace it with tariffs on all imported goods. He has pledged to extend the tax cuts from the TCJA and has proposed removing taxes on tips while decreasing corporate taxes.
**Inflation Concerns**
Inflation has become a pressing issue for many Americans as the cost of living continues to rise. The Federal Reserve’s efforts to curb inflation have made borrowing more expensive, further straining household budgets. A significant portion of the population views inflation as a major concern, with 62% of adults citing it as a significant problem.
Joe Biden has highlighted various measures his administration has taken to lower costs for households, including reducing prescription drug prices and cracking down on excessive fees. On the other hand, Donald Trump has vowed to repeal Biden’s green energy incentives passed in the 2022 Inflation Reduction Act to combat what he calls the “Biden inflation nightmare.”
**Federal Debt and Tariffs**
The federal government’s spending under both Biden and Trump has led to a significant increase in national debt. Economists warn that this trend is likely to continue regardless of the election outcome. Biden has proposed a budget that aims to reduce the budget deficit by $3 trillion over the next decade, while Trump has promised to pay off the entire national debt.
Trade policy uncertainty, particularly regarding tariffs, has reached its highest levels since 2018. Tariffs are taxes imposed on imported goods and services, often used for geopolitical influence or revenue generation. Concerns exist that increased tariffs could result in higher costs for consumers.
Joe Biden recently imposed tariffs on Chinese-made electric vehicles, solar panels, and semiconductors. In contrast, Donald Trump has suggested implementing tariffs on all imports as a means to eliminate income taxes.
**Conclusion**
As the debate between Trump and Biden approaches, it is clear that financial issues will take center stage. From taxes to inflation to tariffs, each candidate offers a distinct vision for addressing these economic challenges. The outcome of the election will undoubtedly shape the financial landscape for years to come, impacting individuals and businesses across the country. Stay tuned for the debate on CNN to hear each candidate’s detailed economic policies and proposals.
