Trump’s Tax Cut Pledges Are Coming Fast and Furious in Waning Days of Campaign
Republican presidential candidate Donald Trump is rapidly unveiling new tax-cut proposals as he approaches Election Day, attempting to sway voters in an election that could hinge on a few thousand votes. With just over three weeks left until the election, these proposals have been coming at a frantic pace, with Trump pledging a new tax cut about once a week.
Typically, candidates in the final stretch of a campaign focus on refining existing proposals rather than rolling out multiple new ones without fully acknowledging the long-term fiscal implications. However, Trump is taking a different approach, promising various tax cuts for consumers, from deducting interest on car loans to relieving tax burdens on overtime and Social Security benefits.
In a recent speech at the Detroit Economic Club, Trump pledged to allow consumers to deduct interest on car loans, a move he claims would bolster the U.S. auto industry. He has also promised to end double taxation for Americans living abroad and allowed homeowners in hurricane-prone states to deduct the cost of home generators on their income taxes.
Michigan, an essential battleground state, is currently witnessing a tight race between Trump and his Democratic rival, Vice President Kamala Harris. Polls indicate that Trump’s tax-cut pledges are a strategic effort to appeal to voters in this critical state.
According to Republican strategist Liam Donovan, Trump’s salesmanship is evident in these proposals, stating, “He’s a salesman at heart, and one of his advantages in sales, as in politics, is that he’s unencumbered by shame or consistency or policy details.” This apolitical approach suggests that Trump is aiming to give voters what they desire in a bid for electoral success.
In total, Trump has introduced several tax cut ideas since mid-May, with numerous proposals emerging in September and October alone. His plans include eliminating taxes on tips and overtime pay, removing caps on the ‘SALT’ deduction primarily benefiting wealthy taxpayers, and reducing the corporate tax rate from 21 percent to 15 percent for domestic manufacturers. Each of these proposals targets specific voter groups necessary for electoral success.
Simultaneously, Harris is also pushing tax proposals that would eliminate or reduce taxes for various voter demographics while also expanding the deficit. In August, she echoed similar promises to eliminate taxes on tips. These simultaneous proposals from both candidates have drawn scrutiny from critics who accuse them of fiscal recklessness.
Michael Bloomberg, former New York mayor, openly criticized both campaigns for what he perceives as “pandering” for votes. He labeled the tax policies proposed during the presidential campaign as a new low in disingenuousness. Most of his critique focused on Trump, stating that the policies proposed by Trump could lead to dire economic repercussions.
Despite the concerns raised, the Trump campaign asserts that its tax cut proposals would ultimately benefit everyday Americans, although they do not address potential fiscal issues. Trump campaign press secretary Karoline Leavitt asserted that if Americans desire reduced taxes, their only choice is to vote for Trump.
Economists remain skeptical regarding the claims made by the Trump campaign. The Committee for a Responsible Federal Budget estimated that Trump’s tax cut proposals could add $7.5 trillion to the federal deficit over the next decade, while Harris’s proposals might cost around $3.5 trillion. Critics highlight that Trump’s offerings seem to favor wealthier Americans disproportionately.
Additionally, it’s essential to note that most of Trump’s tax proposals would require congressional approval, a challenging task given the current division between Democrats and Republicans in Congress. Even if the political landscape shifts after the election, both chambers are likely to remain closely divided, complicating the passage of any substantial legislation.
Arthur Laffer, a longtime economic adviser to Trump, pointed out that making campaign promises is not unusual behavior for politicians. Current polls indicate that voters tend to trust Trump more on economic issues compared to Harris, although Harris has begun to close the gap since taking over from President Joe Biden.
In the coming weeks, it will be crucial to observe how these tax cut pledges play out in the final days of the campaign and how they may influence voter decisions as Election Day approaches.
