The 2024 presidential election highlighted divisions among voters and politicians; however, there is may be potential for middle ground on economic policy, as some of President-elect Donald Trump’s proposals reflect ideas previously supported by some Democratic lawmakers.
Newsweek has reached out to Democratic leadership in the House and Senate for comment via email on Friday.
Capping Credit Card Interest
In September, Trump said on the campaign trail, “We’re going to cap it at around 10 percent. We can’t let them make 25 and 30 percent.” He added, “While working Americans catch up, we’re going to put a temporary cap on credit card interest rates.”
Progressives like Sanders and Representative Alexandria Ocasio-Cortez of New York previously introduced the Loan Shark Prevention Act to Congress. The act would limit the annual percentage rate for an extension of consumer credit to 15 percent.
Earlier today, on The New York Times’ The Daily podcast, Sanders said he would “absolutely” work with and support Trump’s proposal if it mirrors what the Republican campaigned on.
Sanders added, “I think it’s a very good idea. I think it’s time we told the people on Wall Street they cannot charge the desperate working-class people who have a hard time paying their bills’ 25, 30, 40 percent interest rates.”
The current average for credit card interest rates is 21.5 percent, according to Federal Reserve data. This is six percentage points higher than the rates were prior to the Covid-19 pandemic.
Ending Taxes on Social Security
Trump has pledged to eliminate taxes on Social Security benefits once he takes office.
In January this year, Democratic Representative Angie Craig, alongside six Democratic co-sponsors, reintroduced a bill titled “You Earned It, You Keep It Act” that would remove federal income taxes on Social Security benefits. It would increase the cap on the Social Security payroll tax.
The bill was referred to the House Committee on Ways and Means but has otherwise been stalled.
Newsweek has reached out to Craig’s press team for comment via email on Friday.
No Tax on Tips
Senator Ted Cruz, alongside several Republican senators, introduced the No Tax on Tips Act this summer. The proposal sought to eliminate income tax on cash tips, a policy stance both Trump and Vice President Kamala Harris, the Democratic nominee, repeated on the campaign trail.
In July, Nevada’s Democratic Senators Jacky Rosen and Catherine Cortez Masto signed onto the bipartisan bill.
Expanded Children’s Tax Credit
Today, the child tax credit provides families a $2,000 reduction on their tax bill for every child under the age of 17 in their care.
Both Harris and Trump supported expanding the credit on the campaign trail, and Senator JD Vance, the vice-president elect floated the idea of increasing the credit to $5,000.
In 2023, over 40 Democratic senators backed the Working Families Tax Relief Act that sought to make the 2021 child tax credit expansions permanent.
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