The U.S. election on Tuesday will have far-reaching economic consequences, ranging from how Americans are taxed to how the country trades with the rest of the globe.
Democrat Kamala Harris and Republican Donald Trump present starkly different policy visions that will also shape the flow of immigrants into the labor market and make-up of the energy supply that powers industry.
Their differences will influence the prices consumers pay for everyday goods and the borrowing costs households and businesses face on debts.
Much will depend not only on who wins the White House but also which party controls Congress. That's especially so for tax proposals, which must be approved by lawmakers. Still, the president has independent authority to take sweeping actions, particularly on trade and immigration.
Here's a look at five of the most significant economic impacts of the election outcome:
Taxes
Trump has put lowering income taxes front and center of his campaign. He's promised to extend tax cuts passed during his first term — otherwise set to expire at the end of next year — and also further reduce corporate income taxes.
On the campaign trail, he's embraced additional ideas for tax cuts, including ending taxation of tips, overtime pay and Social Security benefits. He claims the revenue loss would be partially offset with new tariffs on imported goods.
Harris has only committed to extending the 2017 Trump tax cuts for those earning less than $400,000 and says she would roll back the expiring tax cuts for the richest Americans.
She has pledged to raise the corporate income tax rate and impose a minimum tax for billionaires. She would expand child tax credits for families and offer breaks for smaller businesses.
The impending expiration of the 2017 tax cuts likely forces action on tax legislation next year. Neither party wants to take responsibility for tax increases on the middle class, so tax policy will dominate Congress in the next session.
The make-up of Congress will be critical to the outcome. An election sweep in which the same party wins control of the presidency, Senate and House would clear the way for a partisan plan. But divided government would force a negotiated deal.
Trade
The biggest potential shock to business would come from Trump's plan to sharply raise tariffs to try to force manufacturers to move production to the U.S.. The Republican has called for minimum tariffs between 10% to 20% on all imported goods, rising to 60% or higher on imports from China.
Bloomberg Economics projects the maximal version of the plan, with the across-the-board tariff at 20%, would lower U.S. GDP by 0.8% and add 4.3% to inflation by 2028 if China alone retaliates. If the rest of the world also retaliates the blow to growth would be greater, lowering U.S. GDP by 1.3%, but would add just 0.5% to inflation because of the weakened US economy.
Harris has signaled broad continuity with the trade policies of the Biden administration and also has warned Trump's proposals would amount to a "national sales tax" on consumers.
