2025 Debate Spotlight: Trump vs. Biden on Taxes, Inflation & Tariffs – What You Need to Know

Diccon Hyatt, a seasoned financial and economics journalist, has extensively reported on pandemic-era economic challenges, translating complex financial issues into accessible insights focused on individual and market impacts. His work spans multiple reputable outlets including U.S. 1, Community News Service, and the Middletown Transcript.

Key Points to Watch in the 2024 Debate

• Taxes, inflation, and foreign tariffs will be central topics in the upcoming debate between Donald Trump and Joe Biden.
• Trump criticizes Biden’s handling of inflation, while Biden highlights progress in lowering costs for consumers.
• The future of the 2017 Tax Cuts and Jobs Act, set to expire in 2025, remains a major policy battleground.

The 2024 presidential debate on Thursday at 9 p.m. ET, broadcast live on CNN and CNN.com, offers both candidates a platform to detail their economic visions amid voter concerns over rising costs and fiscal policy.

Taxes: The 2017 Tax Cuts at a Crossroads

The 2017 Tax Cuts and Jobs Act (TCJA) faces expiration in 2026, potentially reverting tax laws to pre-2017 standards. The top 5% earners, making $400,000 or more annually, stand to benefit significantly if tax cuts extend permanently, according to the Brookings Institution. However, extending these cuts could increase the national debt by nearly $5 trillion over the next decade, per the Bipartisan Policy Center.

Candidate Tax Positions

Joe Biden

• No tax increases for individuals earning under $400,000 annually.
• Allows most TCJA provisions to expire for higher earners.
• Advocates for higher taxes on corporations and top income brackets.

Donald Trump

• Plans to abolish federal income tax in favor of tariffs on all imports.
• Intends to extend TCJA tax cuts for all earners, including the wealthy.
• Proposes eliminating taxes on tips and reducing corporate tax rates.

Inflation: A National Concern

With inflation stretching household budgets and affecting borrowing costs, it remains a key voter issue. A Pew Research survey shows 62% of adults view inflation as a "very big problem." Inflation peaked at 9.1% in mid-2022 but has since eased to 3.3% as of May 2024.

Inflation Strategies

Joe Biden

• Highlights policies targeting cost reductions, including lowering prescription drug prices and combating hidden fees.

Donald Trump

• Promises to end what he calls the "Biden inflation nightmare" by repealing green energy incentives from the 2022 Inflation Reduction Act.

Federal Debt: Managing the Nation’s Finances

The U.S. debt has soared to $34.75 trillion, exacerbated by recent interest rate hikes that increase servicing costs. Both administrations have contributed to high spending, and economists expect this trend to continue regardless of the election outcome.

Debt Reduction Plans

Joe Biden

• Proposed a budget aiming to cut the deficit by $3 trillion over ten years.

Donald Trump

• Vows to completely pay off the national debt.

Tariffs: Trade Policy Under Scrutiny

Trade policy uncertainty is at a peak similar to 2018's trade war era, with tariffs playing a critical role. Tariffs on imports can influence geopolitical relations, protect industries, and affect consumer prices.

Tariff Policies

Joe Biden

• Recently imposed tariffs on Chinese electric vehicles, solar panels, and semiconductors.

Donald Trump

• Has suggested replacing income taxes with tariffs on all imports.

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