Harris promises tax breaks and investments for American manufacturers

U.S. Vice President Kamala Harris said Wednesday she would provide tax breaks to domestic manufacturers and invest in sectors that “will define the next century,” laying out her economic plan to strengthen America’s middle class.

Speaking at the Economic Club of Pittsburgh in the pivotal state of Pennsylvania on Nov. 5, the Democratic presidential candidate said she would give tax breaks to U.S. manufacturers for converting or rebuilding existing factories and expanding “good union jobs.” She also said she would double the number of registered apprenticeships during her first term.

Harris also pledged new investments in sectors such as biomanufacturing, aerospace, artificial intelligence and clean energy.

Harris’ speech, which lasted just under 40 minutes, did not elaborate on how this policy would work. She emphasized her upbringing by a single mother, unlike Trump, the wealthy son of a New York real estate developer.

“I have pledged that building a strong middle class will be the number one goal of my presidency,” Harris said, adding that she sees the election as a moment to choose between two “fundamentally different” visions for the American economy that she and her Republican opponent Donald Trump hold.

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The vice president and Trump are focusing their campaign message on the economy, which Reuters/Ipsos polls have shown is the top concern for voters as the election approaches.

The gap between rich and poor has widened in recent decades. The share of middle-class American households, defined as those with two-thirds to twice the median household income, has fallen from about 62% in 1970 to 51% in 2023, Pew Research shows. The incomes of these households have also not grown as quickly as those of households at the top.

Trump, Harris said, is “only interested in making life better for himself and people like himself, the wealthiest Americans.”

She said she was committed to working with the private sector and entrepreneurs to help the middle class grow. She told the audience she was “a capitalist” who believes in “free and fair markets” and described her policies as pragmatic rather than rooted in ideology.

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Harris has eroded Trump’s lead on economic issues in recent months. A Reuters/Ipsos poll released on Tuesday showed the Republican candidate with a marginal 2 percentage point lead on “the economy, unemployment and jobs,” down from an 11-point lead in late July.

Trump discussed his economic plan in North Carolina on Wednesday, saying Harris’ role as vice president now gives her the opportunity to improve the Biden administration’s economic performance.

“Families are hurting right now. So if she has a plan, she needs to stop bragging and do it,” he said. While Trump has proposed across-the-board tariffs on foreign-made goods — a proposal supported by a slim majority of voters — Harris has focused on providing incentives for companies to keep their operations in the U.S.

Boosting U.S. manufacturing in sectors like semiconductors and bringing back jobs that have moved overseas in recent decades were also key goals for Biden. The Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act — all passed in 2021 and 2022 — fund a range of subsidies and tax breaks that encourage companies to locate projects in underserved regions.