United States 2024 Elections: Kamala Harris vs Donald Trump

The United States is gearing up for one of its most high-stakes and high-profile elections in November 2024, with two very different candidates with differing views on the economy, immigration, healthcare, and climate change, among other key issues, vying for the presidential position. The election thus far has been nothing short of a rollercoaster ride, with a change in the presidential candidates representing the Democratic party and two separate assassination attempts on the Republican candidate. 

The US enforces a two-party system in its political process, and thus politics is dominated by either the Democratic Party or the Republican Party. 

The Democratic Party - what they say

The Democratic Party, as per their website, believes that the economy “should work for everyone”, and that healthcare is a “right”. They want to “lower costs” for working families, therefore increasing purchasing power for those employed in the formal labour force, and increasing investment in the middle class. The Democratic Party has endorsed Kamala Devi Harris, the current Vice-President of the United States, as their presidential candidate. If she wins, Kamala Harris proposes two important policies for workers in the country – first, to raise the federal minimum wage in the US, and second, to remove the federal income tax on tips for workers in hospitality and service roles. The Democratic Party’s proposed budget for the United States Government for the Fiscal Year 2025 also proposes to slash taxes for 39 million low- and middle-income families by an average of $2,600 annually. 

The federal minimum wage in the US has stood at $7.25 per hour for the last 15 years, and an increase would have significant implications for increasing purchasing power of workers in the US. Given that the minimum wage is low relative to prices in the country, most workers in the service sector depend heavily on tips given by consumers to make a living. However, these tips (cash and non-cash) are also taxed by the government, which Harris is proposing to remove. This would also leave more money in the hands of workers to spend, thereby increasing their real income and purchasing power. 

At the Presidential Debate on 10 September, Harris promised a $6,000 tax cut to “uplift middle-class families” and a $50,000 dollar tax deduction to encourage the setting up and growth of small businesses in the United States.

The Republican Party - what they say

The Republican Party, which endorses former President Donald Trump as the presidential candidate, believes in “economic prosperity” and “stimulating economic growth for all Americans”. They propose to make immigration into the United States more difficult, building a wall to “secure the Southern border” and deporting “millions” of illegal immigrants. As per their platform handout, Trump aims to “end inflation” and create manufacturing jobs, which they describe as what American workers “need”. One of their 20 goals if Trump wins is to “make America affordable again”, through tax cuts and no tax on tips, similar to Harris’ approach. Trump also emphasises on “unleashing American energy”, indicating that significant job opportunities will open up in the oil and natural gas industries as well as in the manufacturing sectors. 

Moreover, the handout promises to build housing affordability by reducing mortgage rates and offering tax incentives to support first-time home buyers. It is however not clear by how much or through which specific policies Trump wants to meet these goals. 

Conclusion

One thing seems clear from both candidates – they recognise that workers want to make more and keep more. The removal of a tax on tips seems likely regardless of who wins, boosting the incomes of those in service and hospitality positions. If Harris wins, she has also promised to raise the federal minimum wage, and if Trump wins, he will create more jobs in manufacturing and energy that are specific to only American citizens.