US Election: Trump and Biden Shift Focus Away From Crypto

In the midst of the US presidential race, candidates Donald Trump and Joe Biden have been compelled to pivot their campaign strategies to address a pressing and pervasive issue: the national debt. This shift marks a significant change from their previous focus on appealing to crypto voters, highlighting the urgency and magnitude of the economic challenges facing the United States.

The Rising Tide of National Debt
The United States government debt has reached unprecedented levels, now exceeding $34 trillion. This staggering figure surpasses the debt incurred during World War II, when military expenditures were at their peak. Experts warn that if the current trajectory continues, the debt could become unmanageable within the next two decades, potentially triggering a severe financial crisis in the world's largest economy.

Strategic Responses: Spending Cuts and Revenue Increases
To address the burgeoning debt, both Trump and Biden must consider a dual approach: reducing national spending and increasing government revenue. One method to bolster revenue without raising tax rates involves reducing unemployment. By transitioning more individuals from tax recipients to taxpayers, the government can increase its income. However, with unemployment rates already at historic lows, this strategy poses significant challenges.

Navigating the Tightrope of Taxation
The dilemma of increasing taxes is fraught with complexities. While raising corporate taxes might seem to target businesses rather than individual voters, the reality is that these costs often trickle down to consumers. This paradox means that any tax hike could alienate voters, despite the critical need to address the national debt. Moreover, the implementation of higher taxes must be balanced carefully to avoid stifling economic growth.
Reducing unemployment in order to increase revenue presents another challenge. With unemployment already at historic lows, the government may have to consider employing more individuals or transferring existing manpower to the IRS to enhance tax collection and mitigate tax avoidance to increase revenue.

Policy Proposals from Both Sides
Biden's fiscal strategy includes a proposal to increase the corporate tax rate from 21% to 28%. This significant hike aims to generate additional revenue but also risks raising costs for consumers. Biden's broader tax plan focuses on renewing provisions from the 2017 Trump-era tax cuts that benefit Americans earning under $400,000 while allowing provisions for the wealthy to expire.
Conversely, Trump advocates for extending the 2017 tax cuts and even proposes reducing the corporate tax rate further to 20%. He has also floated the idea of overhauling the US income tax system entirely in favor of higher tariffs, though this proposal faces considerable skepticism and logistical challenges.

The Tax Election Pitch: Who Stands to Gain?
Both Trump and Biden believe they hold the advantage in the tax debate. Biden regularly highlights the shortcomings of trickle-down economics and advocates for a minimum billionaire tax, which he argues could generate $500 billion over the next decade. His stance resonates with many voters who support increased taxation on the wealthy.
Trump, on the other hand, emphasizes his past tax cuts and promises to make them permanent, appealing to voters who favor lower taxes. Despite mixed public opinion on the 2017 tax cuts, Trump’s message continues to find support among his base.
Polling indicates a divided electorate on tax issues. While Biden has a significant lead on the topic of corporate taxes, Trump maintains an edge regarding individual taxes. This nuanced landscape suggests that how each candidate frames their tax policy could be pivotal in swaying undecided voters.

Election Stakes: Navigating Fiscal Challenges and Economic Promises
The US presidential candidates are now squarely focused on addressing the national debt, a challenge that necessitates both spending cuts and revenue increases. Biden proposes raising corporate taxes and renewing middle-class tax provisions, while Trump advocates for extending and potentially lowering existing tax cuts. As the election approaches, the candidates' ability to effectively communicate their economic strategies will be crucial in determining voter support. The national debt remains a critical issue, demanding comprehensive solutions that balance fiscal responsibility with economic growth.