The 2020 presidential elections are vastly approaching, and the two major-party choices are Donald Trump and Joe Biden. There are many topics that presidential candidates’ debate throughout the campaign and election processes; one major topic is how the nominee will handle taxes. How will taxes be affected? Will taxpayers pay more or less? How will recent tax cuts change? Answers to these questions are what people look for when trying to decide who to vote for President. It is essential to stay informed of how candidates view how to handle taxes. Last week, Democratic nominee Joe Biden promised to roll back the tax cuts enacted by President Donald Trump.
Trump signed the Tax Cuts and Jobs Act into law late December 2017, which led to a tax cut on average of 25 percent for Americans. The tax cuts were billed by Republicans to accelerate economic growth, create more jobs, and higher wages. Several economists agreed with the Republicans in their belief of the positive effects tax cuts would have on the economy. The law lowered individual tax rates, doubled the standard deduction, eliminated personal exemptions, increased child tax credits, and held many other changes, including reducing the corporate tax rate from 35 percent to 21 percent. Unfortunately, all the taxes were expected to add $1 trillion to $2 trillion to the federal debt over ten years.
Democrats have opposed tax cuts, believing they contribute to the rising national debt. During a virtual fundraiser, Joe Biden said, “I’m going to get rid of the bulk of Trump’s $2 trillion tax cut, and a lot of you may not like that, but I’m going to close loopholes like capital gains and stepped-up basis.” Biden also said he would raise tax cuts to 28 percent from 20 percent, along with the possibility of capping deductions. Many finance executives and analysts warn that if the Democrats sweep the White House and Senate in November, higher taxes will harm businesses and negatively affect the stock market.
The November elections are quickly approaching, and the choices are going to be between Donald Trump and Joe Biden. Both of whom have different views on how taxes should be handled once elected. In, 2017 President Trump signed a law that helped save Americans about 25 percent on taxes. The tax cut had many benefits, including lower corporate tax, individual tax rates, doubling the standard deduction, and many others that helped save Americans about 25 percent on taxes. Republicans and several economists backed the tax cut believing it would lead to growth in the economy. Last week, Joe Biden stated that he would get rid of Trump’s tax cuts if elected, including raising the corporate tax rate. Changing the tax rate affects every taxpayer, and it is important to stay informed with how each candidate will handle taxes.