In partnership with
With the national debt climbing, Harris's and Trump's economic proposals offer starkly different paths—but each has profound implications for America's financial future.
📰 Key Highlights
Projected Debt Increase: Harris’s plan is expected to add $3.5 trillion to the national debt, while Trump’s plan could raise it by a whopping $7.5 trillion by 2035.
Revenue Focus: Harris targets corporate tax increases to fund social programs, whereas Trump aims to maintain lower taxes with tariffs to offset revenue losses.
Venture Capital Impact: Each plan has different implications for venture capital funding, with varying incentives for tech and startup sectors.
🚀 Deep Dive Section
Economic Forecast and Debt Projections
Under either candidate’s economic strategy, the U.S. fiscal landscape will dramatically change. Each proposal outlines distinct priorities, from Harris’s focus on social programs to Trump’s tax-reduction agenda.
Harris’s Strategy:
Expands social programs and tax credits, adding $3.5 trillion to the debt by 2035.
Leverages corporate tax hikes to keep revenue steady at 18.1% of GDP.
Potentially constrains available capital for startups but increases R&D support.
Trump’s Strategy:
Extends tax cuts and emphasizes deregulation, with a projected debt increase of $7.5 trillion.
Revenue would drop to 16.1% of GDP, indicating less capital for government-led programs.
It positively impacts corporate revenue but may create long-term economic challenges.
Venture Capital Sector Response
The two approaches offer opposing effects on the venture capital ecosystem. Over 700 venture capitalists back the “VCs for Kamala” initiative, viewing her policies as forward-thinking investments in underserved sectors. In contrast, prominent investors from Andreessen Horowitz and others support Trump, highlighting his favorable tax policies for corporations.
The venture capital community is at a crossroads, as both policies offer short-term gains but raise sustainability questions,” says industry expert Sarah Jameson.
Policy Impacts on Startups and R&D
For startups, each plan offers specific incentives and risks:
Harris Plan:
Boosted R&D funding could energize sectors like clean energy and biotech.
The “America Forward Tax Credit” incentivizes tech and green investments, aligning with longer-term growth strategies.
Trump Plan:
Deregulation provides a smoother path for startups, especially in traditional sectors.
Corporate tax cuts could increase available capital, supporting short-term growth for capital-intensive industries.
Economist Concerns on Long-Term Debt
While stimulating specific sectors, both plans raise concerns about debt growth. Economists warn that with deficits exceeding 8% of GDP, both policies could drive higher interest rates, reduced national savings, and slower growth in the long run.
📊 Quick Stats/Charts
$36 trillion: The amount of outstanding public debt the US has amassed.
$892 billion: The cost of servicing that debt through interest payments is set to eclipse this year’s non-mandatory defense spending ($886 billion).
109%: Public debt as a share of GDP will reach a record 109% in 2028—and then keep rising to 122% by the end of 2034.
🌐 Links & Resources
“Like Morning Brew (but for venture capital)”
Join 15,000+ VCs and investors getting smarter on venture capital by reading this free daily newsletter.
Start getting the headlines that matter, lists of companies breaking out, and other resources and playbooks you won’t find anywhere else.
Become a smarter investor in < 5 min a day.
💬 Final Thoughts
The fiscal choices facing the U.S. present distinct paths, each loaded with trade-offs, but the question cuts deeper than numbers. Ten years ago, the metrics that mattered to Americans—secure jobs, a stable economy, and the prospect of homeownership—were straightforward. But today, new priorities redefine these values: technological innovation, equity, climate concerns, and a demand for more meaningful, sustainable growth. What was once “important” has evolved, but have our policies kept up?
For those of us who have watched these shifts firsthand—growing up in immigrant families where financial stability, hard work, and education were the top priorities—the transformation feels personal. I saw what it took to establish a business with limited resources. I’ve watched the venture capital space become one where diverse, innovative ideas can sometimes get pushed aside in favor of short-term profits.
This is why we must ask ourselves: if our values have shifted, what path forward aligns with this new era? Venture capitalists, startups, and policy analysts must weigh the allure of immediate tax breaks against the need for a sustainable, inclusive economy. Do we choose a plan that fuels specific sectors, addresses targeted needs, or opens capital broadly with fewer restrictions? Which path will genuinely serve America’s future, and how will it shape the industries we’re building?
In a world where our values and ambitions have evolved, the best fiscal path isn’t just about what grows the economy fastest—it’s about creating an economy that reflects what we stand for today and what we want to leave behind.
XoXo,
Maximillian Diez, General Partner
Twenty Five Ventures
Gif by IntoAction on Giphy
Encourage readers to share the post and follow your social media channels.
LinkedIn: 25V on LinkedIn
Website: Twenty Five Ventures
P.S. Stay with me on this journey.
If nothing else, thanks for reading.
