Comparing Trump And Biden: Economic Policies And Their Impact

Henrik Larsen

5 min read

Post on May 15, 2025

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Tax Policies: A Tale of Two Approaches

Trump's Tax Cuts and Jobs Act of 2017:

The Trump administration's signature economic policy was the Tax Cuts and Jobs Act of 2017. This legislation significantly lowered both corporate and individual income tax rates. The goal was to stimulate economic growth through increased investment and job creation – a supply-side economics approach.

• Corporate Tax Rate Reduction: The corporate tax rate was slashed from 35% to 21%, a substantial decrease intended to boost corporate profits and investment.
• Individual Income Tax Cuts: Individual income tax rates were also reduced across the board, although the benefits were disproportionately felt by higher-income earners. Standard deductions were increased.
• Criticisms and Consequences: Critics argued that the tax cuts exacerbated the national debt and widened income inequality. While the economy experienced a period of growth following the tax cuts, the extent to which this was directly attributable to the legislation remains a subject of debate among economists. Keywords: Trump tax cuts, corporate tax rate, individual income tax, tax reform, economic stimulus, national debt, income inequality.

Biden's Tax Plan:

President Biden's economic agenda reverses many of Trump's tax cuts, particularly for corporations and high-income earners. The revenue generated is intended to fund infrastructure projects and social programs.

• Increased Corporate Tax Rate: Biden proposed raising the corporate tax rate back to 28%, partially reversing the Trump-era reduction.
• Higher Taxes on High-Income Earners: The Biden plan includes increasing income taxes on individuals earning over $400,000 per year. This includes expanding the top income tax bracket and potentially implementing a wealth tax.
• Closing Tax Loopholes: A key component of Biden's plan involves closing various tax loopholes that disproportionately benefit wealthy individuals and corporations. Increased tax enforcement is also a central component.
• Funding for Social Programs: Revenue from these tax increases is earmarked to fund social programs like affordable childcare, universal pre-kindergarten, and the expansion of the Affordable Care Act. Keywords: Biden tax plan, infrastructure spending, tax increases, wealth tax, social programs, tax loopholes, tax enforcement.

Trade and Globalization: Divergent Strategies

Trump's "America First" Trade Policies:

The Trump administration pursued a protectionist trade policy centered around the "America First" philosophy. This involved utilizing tariffs, withdrawing from international agreements, and prioritizing bilateral trade deals.

• Withdrawal from the TPP: Trump withdrew the United States from the Trans-Pacific Partnership (TPP), a large multilateral trade agreement.
• Tariffs on Imports: Significant tariffs were imposed on goods from China and other countries, leading to trade wars that disrupted global supply chains.
• Bilateral Trade Deals: The administration focused on negotiating bilateral trade deals, often prioritizing specific national interests over broader global cooperation.
• Impact: While some sectors benefited from protectionist measures, the trade wars led to increased prices for consumers and uncertainty for businesses. Keywords: Trump trade policy, tariffs, trade wars, protectionism, America First, bilateral trade agreements, Trans-Pacific Partnership (TPP), global supply chains.

Biden's Approach to International Trade:

Biden's approach to trade is characterized by a return to multilateralism and a focus on fair trade practices. This involves rejoining international organizations and emphasizing cooperation.

• Rejoining International Agreements: The Biden administration rejoined the World Health Organization (WHO) and the Paris Agreement on climate change, signaling a commitment to international cooperation.
• Emphasis on Multilateral Trade: Biden supports strengthening multilateral trade agreements and working through organizations like the World Trade Organization (WTO) to resolve trade disputes.
• Focus on Fair Trade: The administration prioritizes fair trade practices, including addressing issues such as labor standards and environmental protections.
• Impact: Biden's approach aims to create a more stable and predictable global trade environment, albeit with a focus on fair and equitable practices. Keywords: Biden trade policy, multilateral trade, WTO, fair trade, climate change, international cooperation, Paris Agreement, World Health Organization (WHO).

Infrastructure Spending and Economic Growth:

Trump's Infrastructure Plans:

Despite repeated promises, Trump's administration had limited success in enacting comprehensive infrastructure legislation. The focus shifted towards deregulation to encourage private sector investment.

• Deregulation: The administration pursued deregulation in various sectors, aiming to reduce bureaucratic hurdles and incentivize private investment in infrastructure projects.
• Limited Legislative Success: Efforts to pass a large-scale infrastructure bill failed to gain bipartisan support in Congress.
• Impact: The lack of significant federal investment in infrastructure under Trump limited the potential for job creation and economic stimulus through public works projects. Keywords: Trump infrastructure plan, deregulation, private sector investment, bipartisan support.

Biden's Infrastructure Investment and Jobs Act:

Biden's Infrastructure Investment and Jobs Act represents a significant shift towards government-led investment in infrastructure.

• Massive Investment: The act allocates substantial funding for improvements to roads, bridges, public transit, broadband internet access, and clean energy projects.
• Job Creation: A primary goal is to create jobs through infrastructure development and related industries.
• Economic Stimulus: Government spending on infrastructure projects is expected to stimulate economic growth through increased demand and employment.
• Long-Term Impact: The long-term economic consequences of this substantial investment remain to be seen but are projected to be significant. Keywords: Biden infrastructure plan, infrastructure investment, job creation, government spending, clean energy, economic stimulus.

Conclusion:

The economic policies of Donald Trump and Joe Biden represent fundamentally different approaches to governing. Trump’s emphasis on tax cuts and protectionist trade policies aimed to stimulate the economy through the private sector. Biden, conversely, has focused on government investment in infrastructure and social programs, coupled with a more collaborative international trade strategy. The long-term impact of these differing approaches remains to be seen, but understanding the key differences between Trump vs Biden economic policies is critical for investors, businesses, and citizens alike. Further research into specific policy details and their economic consequences is recommended for a comprehensive understanding of their impact. Continue your research on Trump and Biden's economic policies to stay informed about the evolving economic landscape.