Here’s where Trump, Harris stand on the economy, wages, taxes

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Side-by-side of Kamala Harris and Donald Trump. (FOX Newsedge)

The election is a few days away as Vice President Kamala Harris and Donald Trump detail their economic agendas.

One of the big election issues voters are focusing on as they head to the polls is the economy.

Harris and Trump have discussed their economic proposals during their campaigns, and here is what they are saying.

Issue: Economy

What Trump has said

The former president is proposing several tax cuts worth trillions, including an extension of his 2017 tax cuts. Trump says he will pay for them through higher growth and tariffs on imports. Analysts say both tax plans will add to the ballooning deficit, but Trump is by more.

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During his first presidential term, Trump passed the Tax Cut and Jobs Act in 2017, which expires in 2025. The law slashed corporate tax rates and changed how the nation taxes businesses in the U.S. while temporarily cutting personal income and estate taxes, changes that benefitted wealthy people and businesses.

What Harris has said

Harris announced a set of economic proposals that includes building homes, cutting taxes, and lowering the cost of groceries, and other basic needs for people.

With the issue of housing costs affecting the nation, the vice president debuted a new ad amplifying her plan to build 3 million new homes over four years to manage inflationary pressures.

Harris is also proposing the government provide $25,000 in assistance to first-time homebuyers.

According to the Associated Press, the vice president’s plan would establish tax breaks for homebuilders focused on first-time buyers and expand existing incentives for companies that construct rental housing.

The AP reported that with local zoning limiting the supply of houses, Haris would double the available funding to $40 billion to encourage local governments to remove the regulations that prevent extra construction.

Issue: Inflation

What Trump has said

The former president has promised to "end inflation and make America affordable again" asserting that more drilling for oil will lower energy costs, the BBC reported. Trump also promised to deliver lower interest rates, and believes deporting undocumented immigrants will ease pressure on housing. Economists warn that his vow to impose higher tax on imports could push up prices.

What Harris has said

The vice president contends that one of her main priorities on day one in office would be to try to lower food and housing costs for working families.

Harris has promised to ban price-gouging on groceries, help first-time home buyers, increase housing supply, and raise the minimum wage. The BBC noted that Inflation increased under the Biden administration in part because of post-pandemic supply issues.

Issue: Wages

What Trump has said

Donald Trump wants to make tips tax-free under a new proposal, although specifics of how the plan will work are unknown. Trump also promised to eliminate taxes on tipped income, but this would require approval by Congress.

Trump announced his plan during a June 9 rally in Nevada, a key battleground state with six electoral votes in the race for the White House.

But Trump has not explained whether he wants to exempt tips from just income taxes or the payroll tax too. The payroll tax funds Medicare and Social Security, the AP noted.

For workers, a general exemption may mean more take-home pay. And for the federal government, it could mean bigger budget deficits.

What Harris has said

Harris told NBC News she wanted to increase it to at least $15 an hour, admitting that she would need support in Congress for the change. Currently, the federal minimum wage is $7.25 an hour.

The vice president promised to work to eliminate taxes on tips paid to restaurant and other service industry employees, like Trump.

Harris' campaign told the Associated Press that if she is elected president, she would work with Congress to draft a proposal that includes an income limit and other terms to keep hedge fund managers and lawyers from structuring their compensation to try to take advantage of the policy. Harris also would push for the proposal alongside one to increase the federal minimum wage.

Issue: Taxes

What Trump has said

Trump has unveiled a series of targeted tax breaks, including eliminating federal taxes on tips, Social Security benefits and overtime pay.

Although the Trump campaign has not released details on the proposal, the Republican presidential candidate suggested he would eliminate both federal income taxes and payroll taxes, which fund Social Security and Medicare.

All tipped workers would get some tax relief if the former president eliminates payroll taxes on tips, but these employees would receive smaller Social Security payments after they retire, CNN reported, citing the Tax Policy Center.

Trump has pledged that Social Security beneficiaries would not have to pay taxes on the monthly benefits they receive.

He also proposed getting rid of taxes on overtime pay, though his campaign has not provided any details. However, if workers do not owe payroll taxes on their overtime compensation, they could receive less from Social Security in retirement.

Separately, Trump proposed to extend the 2017 tax cuts that he signed into law, when he was president, which will expire at the end of 2025. That package slashed the corporate tax rate from 35% to 21% and doubled the standard deduction and child tax credit, the Associated Press reported.

These parts will remain until a new law is implemented, but other tax cuts in the former president’s package will end without action by Congress. Trump told the AP that he wants to trim the corporate tax rate to 15% and cancel any tax hikes that happened under President Joe Biden.

Trump has urged Congress to pass legislation giving the president authority to impose a reciprocal tariff on any country that imposes one on the U.S. Much of the Republican presidential candidate's trade agenda has focused on China. Trump has proposed phasing out Chinese imports of essential goods including electronics, steel and pharmaceuticals and wants to ban Chinese companies from owning U.S. infrastructure in sectors such as energy, technology, and farmland.

What Harris has said

Harris has promised to end federal income taxes on tips.

Tips would remain subject to payroll taxes under the vice president’s plan, and her campaign tells CNN they would work with Congress on a proposal that would set income limits and include measures to prevent fraud.

Tipped workers would not benefit from eliminating federal income taxes on tips since they do not earn enough to pay income tax, CNN reported, citing the Budget Lab at Yale University.

Additionally, Harris said she will continue President Joe Biden’s pledge not to raise taxes on anyone making under $400,000 a year – which would mean extending some of the individual tax cuts. But she will push Congress to roll back tax cuts for the richest Americans, according to her policy paper.

Harris has also proposed raising the corporate tax rate to 28% from 21% currently to help cut future deficits, echoing President Joe Biden, but a lower tax rate on capital gains for those who earn over $1 million a year, Reuters reported.