• Neither candidate has proposed increasing taxes on the middle class, though tax bills for those making more than $400,000 could rise if Vice President Kamala Harris's plans were enacted into law.
• Consumer prices are likely to remain elevated under either candidate, though former President Donald Trump's proposed tariffs could add to inflation.
• Both candidates support expanding the Child Tax Credit, though its high cost could make passage challenging.
• Faced with policy uncertainty, it's important to have a long-term financial plan.

“It’s the economy, stupid.” That infamous line from former Clinton campaign strategist James Carville in 1992 is as relevant now as then. Unemployment is near historic lows. Inflation has dropped from a post-pandemic high of 9% to 2.5%. The stock market is touching new highs. And both interest rates and energy prices are dropping, providing new life to the economy. Indeed, some indicators suggest we’re more likely in the middle phase of the business cycle versus the late phase which typically precedes a recession.

A recent Gallup poll found a majority of Americans rank the state of the economy as their top concern, and nearly 45% characterize it as poor.1 Perhaps it’s no wonder: Every time people head to the grocery store for food or to a big box store for school supplies, or open a bill for common items like house or auto insurance, they can see costs going up—and their wallets feeling lighter.