Biden, Trump, & taxes: The issue neither candidate can ignore

The 2025 election is set to trigger a $6 trillion divide over tax policy. While former president Donald Trump is looking to lower the corporate tax rate and permanently extend his 2017 Tax Cuts and Jobs Act, President Joe Biden is calling for a fairer tax code, keeping the Trump tax cuts for families making under $400k, but raising rates for the ultra rich. Regardless of their stance, tax policy will be the first order of business with the tax bill expiring in 2025.

But the outcome of the election gets a bit more complicated. A Trump win may not necessarily mean the Republican party is on board with Trump’s policy proposal.

Yahoo Finance’s Washington Correspondent Ben Werschkul said that while Republicans are united around Trump as their nominee, they are still divided over how to address the 21% federal corporate tax rate if the GOP controls Washington next year. The pro-business wing makes the case that lower rates can allow companies to invest in their workers and better the economy, while the populist wing maintains the need for corporate responsibility through higher taxation.

Debate over the rollout of next year’s tax policies comes amid growing concerns about the country’s rising debt. The Congressional Budget Office projects federal debt held by the public to skyrocket to more than 122% of GDP in the next decade.

The President of the Committee for a Responsible Federal Budget Maya MacGuineas argues the rapid rise in the country’s debt now poses a “national security risk.” She said both candidates need to have a plan to address the debt, and offset the costs of the tax cuts they want to implement.