Former President Donald Trump and Vice President Kamala Harris have put forth competing tax proposals in their campaigns, each aiming to provide tax breaks to various groups of Americans. Trump, in recent months, has suggested tax cuts for senior citizens, tipped workers, overtime earners, and homeowners in high-tax states. His latest proposal includes removing the $10,000 deduction cap on state and local taxes (SALT) put into effect by the 2017 Tax Cuts & Jobs Act. The cost of implementing these tax breaks, along with extending current tax cuts and reducing the corporate tax rate, could add up to a staggering $9 trillion over the next decade, according to TD Cowen analyst Jaret Seiberg.

To offset these costs, Trump has suggested imposing new tariffs on all imports into the U.S., claiming that tariffs would significantly reduce the nation's deficit and foster economic growth. However, experts doubt that the revenue generated from tariffs, estimated to reach $2.8 trillion over a decade by the Tax Policy Center, would be sufficient to cover the expenses of Trump's proposed tax cuts. Similarly, Harris has unveiled her own tax benefit plans, focusing on aiding new parents and first-time homebuyers, with an estimated deficit increase of $1.2 trillion over the next ten years.

Both campaigns have faced criticism from tax experts and fiscal hawks for potentially exacerbating the deficit, which is projected to reach $1.9 trillion in fiscal year 2024 according to the Congressional Budget Office. The impacts of Trump and Harris' proposed tax reforms on the budget have sparked concerns about the nation's financial health. While Trump's plans, if fully enacted, could lead to substantial deficit growth, Harris' proposals also present a significant fiscal challenge, particularly in light of the ongoing economic landscape and global uncertainties.