Harris vs. Trump Economic Plans
Ceasefire / hostage deal status update; Taylor Swift AI Endorsement
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Morning everyone,
Was anyone else wondering how this epic behind-the-back play by Chiefs QB Patrick Mahomes and Tight End Travis Kelce went down?!
Mahomes says Kelce messed up the play. Kelce says Mahomes flubbed the call. We may never know, but they both roasted each other in their explanation… which might be the best part of it all. Either way, it was a mishap that made the highlight reels.
Have a good one!
Mosheh & Jill
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📌 CONTRASTING TRUMP VS. HARRIS ECONOMIC PLANS
Everyone hates inflation. The economy is repeatedly ranked the top issue driving voters to the polls this November. Both Kamala Harris and Donald Trump have pledged to alleviate the financial burden on most Americans with policies that will lower prices and get the U.S. economy firing on all cylinders again. We all have the same goal — but which policies can help get us there?
HARRIS’S ECONOMIC PLAN
In rolling out her economic blueprint, Harris acknowledged prices are too high and that the bills are adding up — quick. She outlined some of her proposals including price controls on groceries, caps on drug prices, and assistance for first-time homebuyers.
Corporate tax rate: Harris wants to push to raise the corporate tax rate to 28% — directly rolling back Trump’s signature Tax Cuts and Jobs Act (see below).
Food: She will enact the first-ever nationwide ban on grocery price gouging in her first 100 days.
Housing: Harris has made affordable housing a central part of her economic plan. She’s vowed to construct 3 million new units, offer a tax break to developers who build starter homes, and give 1 million first-time homebuyers $25,000 in down-payment assistance
Medicine: Capping insulin at $35/month for all Americans
Child tax credit: Provide up to $6,000 per child to families for the first year of a baby’s life
Eliminate taxes on tips: Harris matched Trump’s proposal of ending federal taxes on tips.
WILL IT RESONATE?
Many of Harris’s proposals build on the work of the Biden Administration, but go one step further. The economy isn’t Biden’s strongest issue, and Harris has received some criticism for not distinguishing herself more from Bidenomics.
Critics say:
The Tax Foundation, a non-partisan think tank, warns raising taxes on corporations is often sold as an easy way to fund helpful government services, but the reality is that increasing the corporate income tax hurts the very people its meant to help.
Analysis from the non-partisan CRFB found her policies could increase deficits by $1.7T over a decade, and grow to $2T if her housing policies were cemented.
Her price-gouging plan ignited a wave of skepticism from economists on both sides of the aisle who fear it would create more problems than it would solve, like raise taxes on Americans making less than $400K per year, and remove competition in the industry, which helps keep prices stable. Obama’s former economic adviser said it’s not a sensible policy.
Most experts also say rising food prices is not the result of price gouging from companies, but in many cases, because of rising wages for workers.
Questions also remain over how Harris would pay for these programs.
Supporters say:
Increasing the housing supply would help decongest the housing market, which has caused prices to surge (low supply = high demand)
Raising the minimum wage could help decrease inequality
Targeted financial aid, like offering a child tax credit, is generally less fiscally damaging than broad-based tax cuts
TRUMP’S ECONOMIC PLAN
At a rally in must-win Pennsylvania over the weekend, the former President spoke to voters about his economic and energy agenda.
Corporate tax rate: Trump wants to preserve the Tax Cuts and Jobs Act that he installed in 2017, one of the signature achievements of his first term, which lowered the corporate tax rate to 21%.
Social Security: End taxes on social security benefits to help seniors on fixed incomes.
Tariffs: Implement tariffs of 10%-20% on goods imported from other countries.
Energy: Roll back climate and environment regulations, which he blames for rising energy costs.
Eliminate tax on tips: He first conceived of the proposal.
WILL IT RESONATE?
Expect another Trump economy to look and feel like his first four years. If re-elected, he would revive many of the economic proposals he implemented during his first term in office. The WSJ writes
Critics say:
16 Nobel Prize winning economists warned Trump’s economic policies, specifically his tariffs, would negatively impact America’s economic standing on the world stage and destabilize the economy.
Most economists generally say increasing tariffs could actually increase inflation by trickle-down economics — a higher price for the producer means a higher price for the consumer. Experts also warn it could threaten jobs and shrink the economy.
The CRFB estimates Trump’s plan to cut taxes on Social Security would increase deficits by up to $1.8 trillion through 2035.
Ending taxes on tips will be unfeasible and could create chaos in the system.
Supporters say:
Slashing the corporate tax rate removes a large incentive for relocating offshore. Many companies also reward workers with higher pay.
Trump’s first three years in office also produced record-low levels of regulations. That, paired with Trump’s tax policies, lifted investment and the economy, which had slowed in the last two years of the Obama presidency.
Business investments during Trump’s first three years doubled, which created a tighter labor market and ultimately higher wages that benefited lower-income workers.
⏳ SPEED READ
🚨NATION
📌 Manhattan’s DA’s office does not explicitly oppose delaying Trump’s sentencing until after the election (ABC)
📌 Trump posts fake AI images of Taylor Swift and Swifties, falsely suggesting he has the singer’s support (CNN)
📌 Floods from thunderstorms lead to dramatic rescues and 2 deaths in Connecticut (AP)
📌 Pro-Palestinian demonstrators who plan to “shut down” the DNC this week are taking from cues college campus protests, which were orchestrated with the help of an encrypted messaging network that also shares pro-Hamas content. (POLITICO)
📌 Rare “doomsday fish’ found off the coast of Southern California (PEOPLE)
🌎 AROUND THE WORLD
📌 U.S. confirms Israel has accepted a ceasefire/hostage deal proposal and urges Hamas to do the same (TIMES OF ISRAEL)
📌 Hamas and other Palestinian terror groups claim responsibility for suicide bombing in Tel Aviv (REUTERS)
📌 Ukraine strikes bridges in Russia, aiming to entrap troops (NEW YORK TIMES)
📌 Multiple people including British tech tycoon missing after yacht sinks off the coast of Sicily (BBC)
📱BUSINESS, SCIENCE & TECH
📌 New rules for realtors will make buying a home more complicated, but could save buyers and sellers money (BUSINESS INSIDER)
📌 “Steepest” rollercoaster in the world coming to Six Flags next year (FOX BUSINESS)
📌 Lamborghini’s first EV is nearly ready (THE VERGE)
📌 SpaceX is about to send four people on a wild — and risky — mission (CNN)
🎬 SPORTS & ENTERTAINMENT
📌 Danielle Fishel, Boy Meets World star, reveals she has breast cancer (CNN)
📌 Michael Oher, inspiration behind The Blind Side, speaks out for first time since suing the Tuohy family (PEOPLE)
📌 How to strengthen your happiness muscle (NEW YORK TIMES)
🗓 ON THIS DAY: AUGUST 20
1896: The dial telephone was patented.
1989: Lyle and Erik Menendez murdered their parents, José and Kitty, in the family’s Beverly Hills mansion, becoming a media sensation.
1989: 'Saved By The Bell' premiered on NBC
1999: Alain Robert, the French daredevil known as 'Spiderman,' scaled Chicago's 110-story Sears Tower.