Former President Donald Trump is proposing a series of working-class tax cuts in response to Vice President Kamala Harris’s claims that he primarily serves billionaires. In Tucson, Arizona, Trump announced a plan to end taxes on overtime pay, reinforcing his populist message in his third presidential run. He also previously proposed making service workers’ tip wages tax-exempt.
“The people who work overtime are among the hardest-working citizens in our country, and for too long, no one in Washington has been looking out for them,” Trump said.
Harris criticizes Trump for favoring the wealthy, citing the 2017 tax cuts he signed into law, which expire next year. While these cuts benefited most taxpayers and expanded the child tax credit, they also reduced the corporate tax rate, a point of contention for Democrats.
“Donald Trump has no plan for you,” Harris stated during a debate in Philadelphia. “It’s all about tax breaks for the richest people.”
Some of Trump’s proposals predate Harris’s candidacy, such as his June announcement of the “no tax on tips” plan. Trump has used tax policies to appeal to the working class and counter Democratic attacks. His proposal to eliminate taxes on Social Security benefits is popular among seniors, with 83% supporting the change according to a Wall Street Journal poll.
Trump also announced a government-funded IVF plan to counter Harris’s accusations that he wants to restrict reproductive care. However, this proposal lacks wide support among Republicans, with Sen. Lindsey Graham opposing it.
Despite Harris’s struggles with voter skepticism due to inflation, she promotes Biden’s policies, like the pledge not to raise taxes on those earning under $400,000 annually. Harris also proposes $25,000 in assistance for first-time homebuyers and plans to raise the capital gains tax at a lower rate than Biden.
Trump leverages the southern border crisis to accuse Harris of causing job losses to illegal immigrants, while Harris targets Trump’s record and policies, noting that Trump scaled back an Obama-era rule expanding overtime pay, which the Biden administration reinstated.
Republicans dismiss Harris’s criticisms, pointing out that her campaign, like Trump’s, is supported by billionaires and Hollywood endorsements. Republican strategist Scott Jennings mocked her for being endorsed by celebrities like Taylor Swift and Oprah.
Harris aims to reset the economic narrative, highlighting her middle-class background and career as a California prosecutor and attorney general. Democratic strategist Brad Bannon notes that Harris is working to define herself to voters unfamiliar with her.
The economic debate is crucial in the race. Harris has closed the polling gap with Trump, and some polls suggest she may be ahead post-debate.
Trump’s tax plans may attract traditionally Democratic voters, with Trump claiming support from the United Auto Workers despite their president’s opposition. Harris, on the other hand, adopted Trump’s “no tax on tips” proposal to appeal to service workers in swing states.
