Trump, Biden offer clashing visions on reopening economy
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[September 17, 2020]
By Trevor Hunnicutt and Jason Lange
(Reuters) - The coronavirus pandemic threw
millions of Americans out of work, ended the longest U.S. economic
expansion on record and undermined a key argument for President Donald
Trump's re-election.
Now, the Republican president and his Democratic opponent in the Nov. 3
election, Joe Biden, want to convince Americans they can get the economy
back on track. Here is how they want to revive it:
BACK ON TRACK
In the first few months of the crisis, the U.S. Congress approved and
Trump signed a series of laws pumping $3.4 trillion in stimulus aid into
the economy, including help for businesses, people and local
governments. Since May, the parties have not been able to agree on
additional steps.
Trump in August signed an executive order aimed at boosting some
unemployment benefit checks that some economists said would have limited
effect. He has continued to call for more stimulus spending, even after
his fellow Republicans in the U.S. Senate rejected their own leaders'
July proposal.
![](http://archives.lincolndailynews.com/2020/Sep/17/images/ads/current/charrons_bch041713.png)
The president has also pushed states to reopen as quickly as possible,
even as infections increased.
Biden has cautioned against reopening the economy without first ramping
up coronavirus testing. The former vice president, who oversaw U.S.
stimulus spending after the 2008 financial crisis, says households and
local governments need more support to get through the recovery.
While Trump has said further stimulus measures must include a cut to the
payroll tax that finances the Social Security retirement program, Biden
wants Washington to offer states more support in paying for unemployment
benefits.
TRADE
Both candidates say they want to boost domestic manufacturing. Trump,
who ran on the issue in 2016, stepped up verbal attacks on Beijing as
his administration accelerates an initiative to remove industrial supply
chains from China.
He has also argued that America's difficulties in procuring medical
supplies internationally during the pandemic are another reason to
encourage U.S. companies to avoid offshoring.
Biden offered his own made-in-American manufacturing plan, pledging to
spend $700 billion on American-made products and industrial research,
which he said would give at least 5 million more people a paycheck
during a job-killing pandemic.
He also proposed a 30.8% corporate tax rate on profits from products
made overseas and sold in the United States, and would provide
incentives to companies that keep jobs in the country. Companies
currently pay a 21% rate, which was lowered during the Trump
administration.
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![](../images/091720PIX/news_q33.jpg)
Democratic U.S. presidential nominee and former Vice President Joe
Biden discusses his plans if elected to develop and distribute a
safe coronavirus disease (COVID-19) vaccine, during a campaign
speech after being briefed by public health experts in Wilmington,
Delaware, U.S., September 16, 2020. REUTERS/Jonathan Ernst
![](../images/ads/current/fitzpatrick_lda_SPONSOR_2017.png)
As a senator, Biden voted in 1993 for the North American Free Trade
Agreement (NAFTA), a trade pact that in part helped Mexican
factories gain access to the U.S. market.
Biden has criticized Trump's tariff war with China as bad for U.S.
consumers and farmers. However, in 2018, he called for "retaliation"
on countries like China which he has said subsidize industries and
allow intellectual property theft.
TAXES
The president, a former real estate developer, has touted 2017 tax
cuts he signed into law as stimulating economic growth.
Biden said the cuts benefited the wealthy and corporations. He has
pledged to reverse some of those cuts, raising the marginal tax rate
on the highest income earners back to 39.6%, from 37%, while also
lifting investment profit taxes. He also supports raising the
national minimum wage to $15 an hour from $7.25 and expanding some
tax credits for lower-income workers.
Trump has attacked the idea of raising taxes while the economy
recovers.
GREEN INVESTMENTS
Biden wants to spend $2 trillion over four years to improve
infrastructure, create zero-emissions public transportation, build
sustainable homes and create clean-energy jobs.
Trump advocates more spending on U.S. roads, bridges and airports,
too, but has signaled little appetite for making "green"
investments.
![](http://archives.lincolndailynews.com/2020/Sep/17/images/ads/current/rohlfs_lda_072017.png)
(Reporting by Trevor Hunnicutt in New York and Jason Lange in
Washington; Editing by Scott Malone and Jonathan Oatis)
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