Economic Showdown: Harris Team Warns CEOs, Trump Promises Growth

The 2024 US presidential race is heating up, with former President Donald Trump and Vice President Kamala Harris presenting contrasting economic visions. While Harris' team warns CEOs about Trump's proposals, Trump promises historic growth. Let's delve into their plans and the potential implications for businesses and the economy.


**Harris' Team: Trump as a Threat to Economy**

Harris' team has expressed concern over Trump's economic proposals, particularly his tax cuts and elimination of certain taxes. They argue that these policies could exacerbate income inequality and threaten economic stability. Harris' own economic policies, such as extending individual tax cuts for those earning under $400,000 and increasing taxes on the wealthy, aim to balance the budget and fund social programs.


**Trump's Proposals: Historic Growth and Tax Cuts**

Trump's campaign has outlined key economic issues, focusing on tax cuts and eliminating certain taxes. He proposes extending all individual income and estate tax cuts from the 2017 Tax Cuts and Jobs Act, including increasing the standard deduction, lowering marginal income tax rates, and raising the estate tax exemption. Additionally, Trump suggests eliminating the cap on state and local tax deductions (SALT) and lowering the corporate tax rate to 15% for certain companies. He also aims to restore companies' ability to immediately deduct investments in equipment and research. Furthermore, Trump has rolled out targeted tax breaks, including eliminating federal taxes on tips, Social Security benefits, and overtime pay.

Trump's promises of historic growth align with his proposed tax cuts, which aim to stimulate economic activity. However, critics argue that these tax cuts disproportionately benefit the wealthy and may not lead to the promised historic growth. Moreover, the Committee for a Responsible Federal Budget estimates that Trump's platform would cause the national debt to spike by roughly $7.8 trillion over the next decade, raising concerns about the long-term sustainability of the economy.

**CEOs' Perspectives and Market Implications**

CEOs' views on Harris' and Trump's proposals vary, with some expressing concern about increased taxes and others welcoming potential infrastructure spending. According to a survey by the Business Roundtable, 71% of CEOs believe the US economic recovery is fragile, with 54% citing regulatory uncertainty as a top challenge. Harris' proposals, including higher corporate tax rates and additional taxes on wealthy individuals, may deter investment and job creation, according to some CEOs. However, her infrastructure plan could boost economic growth and job creation. Trump's proposals, such as extending tax cuts and reducing regulations, are generally viewed positively by CEOs, who believe they could stimulate economic growth and job creation. However, some CEOs express concern about the potential for increased deficits and inflation under Trump's proposals.

As the 2024 presidential race intensifies, businesses and investors must carefully evaluate the economic proposals of both candidates. While Harris' team warns of the risks associated with Trump's proposals, Trump promises historic growth through tax cuts and deregulation. The ultimate impact on the economy and businesses will depend on the outcome of the election and the ability of the winning candidate to implement their policies.