Policy Backgrounders

The Presidential Candidates’ Fiscal Policies

August 23, 2024

Trusted Insights for What’s Ahead™

As the 2024 Democratic National Convention wraps up this week, the Presidential campaign enters its decisive stretch. November’s election will have significant implications for Federal fiscal policy. Despite suggesting some policies that improve the nation’s fiscal outlook, neither Presidential candidate has proposed a comprehensive strategy and package of reforms necessary to tackle our Debt Crisis.

• The Democratic platform highlights the economic recovery after the pandemic and the Administration’s investments in manufacturing and infrastructure to further spur economic growth. The platform seeks to bolster and expand the Administration’s health care, housing, and child-related initiatives by raising additional revenue from high-income households and corporations but does not fully fund these initiatives.
• On the campaign trail, the Vice President has focused on policies to reduce inflation and the high cost of housing and health care and help working people, with proposals to eliminate taxes on tips, extend Medicare prescription drug pricing policies beyond Medicare, and establish new Federal powers against food and grocery price gouging (some states already have similar laws).
• The Republican platform emphasizes fiscal policies to tackle inflation, reduce regulations, and cut taxes, though in a stark departure from previous Republican platforms it makes no mention of the national debt. Former President Trump contends that his immigration, border security, trade, and national security policies will boost economic growth and promote price stability, though his tariff proposals would likely increase inflation, raising Federal borrowing costs.
• Neither Presidential candidate has outlined a comprehensive approach to address our Debt Crisis. The Democratic platform proposes some revenue increases to offset a portion of the costs of new policy proposals. Both candidates have vowed to not cut any mandatory spending on Medicare and Social Security.