China Stocks Falter, Fed Stays Cool on Rate Cuts. Why Traders Are Jittery and 5 Other Things to Know Today. -- Barrons.com

Former President Donald Trump's proposed tax cuts, higher tariffs, military expansion, and mass deportations would balloon federal budget deficits by $7.5 trillion over the next decade, more than twice as much as Vice President Kamala Harris' proposals, the nonpartisan Committee for a Responsible Federal Budget estimated.

   -- CRFB's study compared Trump's tax-cut promises to Harris' social-policy 
      spending, middle-class tax cuts, and higher taxes for corporations and 
      ultrarich households. The study estimated Harris' plan would raise 
      deficits by $3.5 trillion. 
 
   -- Besides extending his expiring 2017 tax cuts, Trump plans to cut taxes on 
      tips, Social Security benefits, and overtime pay, and restore the 
      deduction for state and local taxes, which his law capped at $10,000. His 
      tariffs and energy proposals won't make up the difference, CRFB said. 
 
   -- Harris said she won't raise taxes on households making under $400,000; 
      will expand tax credits for families with children, first-time home 
      buyers, and some companies; and will invest in paid leave and child-care. 
      She wants billionaires and corporations to pay more taxes on capital 
      gains and corporate profits. 
 
   -- Those higher deficits are in addition to the $22 trillion in budget 
      deficits the U.S. is on pace to generate over a decade, The Wall Street 
      Journal reported. Even so, U.S. debt levels have historically had no 
      correlation with how stocks or bond markets performed, Charles Schwab 
      said. 

What's Next: The Dow Jones Industrial Average could signal November's election outcome, according to Leuthold Group. If the Dow, up 11.3% this year, keeps rising, that could help Harris win the White House; if the Dow falters, that could favor Trump. Voters are likely to worry more about the economy.

-- Janet H. Cho, Joe Light, and Ian Salisbury

***

Be sure to join this month's Barron's Daily virtual stock exchange challenge and show us your stuff.

Each month, we'll start a new challenge and invite newsletter readers -- you! -- to build a portfolio using virtual money and compete against the Barron's and MarketWatch community.

Everyone will start with the same amount and can trade as often or as little as they choose. We'll track the leaders and at the end of the challenge the winner whose portfolio has the most value will be announced in The Barron's Daily newsletter.

Are you ready to compete? Join the challenge and pick your stocks here.

***

-- Newsletter edited by Liz Moyer, Patrick O'Donnell, Rupert Steiner

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 08, 2024 06:49 ET (10:49 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.