Trump aims to cancel tax preferences for electric cars.
Current U.S. Vice President Harris (Kamala Harris) who is running for U.S. president, has announced an important proposal for her future administration - to raise the corporate tax rate to 28% to increase government revenue and help meet the funding needs for large-scale tax cuts for the poor and middle class.
At the same time, Trump revealed on Monday that if he wins a second term in the White House, he will provide a cabinet position or advisory role in his government to Elon Musk, CEO of Tesla and SpaceX.
Trump has also proposed a reconsideration of the tax rebate policy for new electric cars. He hinted that he may revoke the $7,500 tax rebate for electric cars, including Tesla, which may have an impact on Tesla's sales.
Harris proposes to raise corporate tax rate to 28%.
During the American Democratic National Convention on Monday, August 19th, Eastern Time, Democratic presidential candidate Harris called for an increase in the corporate tax rate to 28%. This is her first major proposal as a presidential candidate, aimed at increasing government revenue and providing funds for her expensive plans.
Harris's campaign spokesperson James Singh said that Harris will promote a 28% corporate tax rate, calling it a 'fiscally responsible way to put money back in the pockets of the working class, and ensure that billionaires and big corporations pay their fair share.'
During his term in office, Trump lowered the corporate tax rate from 35% to 21% and implemented other tax cuts and incentives, which will expire next year. Trump pledged to make these tax cuts permanent.
Changes to U.S. tax law require congressional approval. Democrats and Republicans are fiercely competing for control of the Senate and House of Representatives, with both parties vying for control in the November 5th elections.
Democratic candidate Harris promises to abide by President Joe Biden's commitment not to increase taxes on those earning less than $0.4 million per year.
In a recent economic policy speech, Harris outlined proposals for tax cuts for most Americans, a ban on grocers 'inflating prices', and the construction of more affordable housing, all part of her plans for a 'opportunity economy' once she takes office in the White House.
Trump considers stopping tax exemption for electric cars up to $7,500.
On Monday, Trump said he would consider ending the $7,500 tax break for buying electric cars and would be open to appointing Tesla CEO Elon Musk as a cabinet member or adviser if elected.
Trump said, 'Tax credits and incentives, generally speaking, are not a very good thing.'
In addition, when talking about Musk, Trump said he would consider appointing Musk as an adviser or cabinet member. 'He's a very smart guy. If he wants it, I'd do it of course. He's a smart guy.'
Musk publicly supported Trump's candidacy for the presidency last month.
When talking about Google, Trump said, "They're almost like the Wild West. They're going to pay a big price." But Trump did not elaborate on what kind of punishment Google should face.
In the face of criticism from outside the Federal Reserve about weakening its autonomy, Trump lightly said that he should be free to share his views on interest rate policy, and he has the right to comment on interest rate policy, but the Fed does not have to listen.
Neuman: Some of the most popular campaign ideas are the dumbest.
American financial columnist Rick Neuman bluntly stated that less than a month after taking over as Democratic presidential candidate, Harris proposed a government gift list as the basis for what she called her economic plan. In order to differentiate herself from Biden, Harris wants to specifically reduce food and housing costs, two areas that have been a painful spot for voters in the past three years.
Neuman said ironically that some of her plans, if implemented, may have the opposite effect and increase costs instead of lowering them.
Some of Republican candidate Donald Trump's promises are similar, and these promises will make Americans' lives worse. 'This is like a collection of the scariest economic policies I learned in graduate school,' economist Alison Schlage lamented on August 19th.
Level-headed policy analysts condemn politicians for catering to voters with absurd plans that are simply not worth laughing at.
But the fact is that this works-all insiders know this. There are too many vague policies in political campaigns, and simple pandering is more effective than complex truth. In the end, many voters just choose those they think are lying least or lying for good reasons.
The candidate does have some good ideas, but also some bad ones.
Harris hopes to increase housing supply, which is the real way to lower housing prices and enable more people to own homes. The only problem is that federal policy cannot have a significant impact on restrictive zoning laws, which are mostly local.
Trump hopes to cut regulations, which would increase corporate productivity if he targets the most outdated rules without harming safety and environmental protection. But rational things are boring, and only crazy ideas can truly capture people's attention.
Opinion polls show that Harris leads Trump with 48.1% to 46.7%, but the former president is ahead by 9 percentage points on economic issues. Trump vows to extend the expiring tax cuts and impose tariffs on America's allies and adversaries if he returns to power.
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