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Kamala Harris’ Economic Platform: What We Know

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Kamala Harris’ Economic Platform: What We Know

Topline

Vice President Kamala Harris rolled out new economic proposals Monday aimed at Black men, adding to the economic plans she’s already released as the nominee has already called for an “opportunity economy” focused on the middle class and released proposals that include lowering grocery and prescription drug prices and addressing the housing crisis.

Key Facts

“Opportunity Agenda” For Black Men: The Harris campaign rolled out proposals Monday aimed at garnering support from Black men, including on the economy, which include providing fully forgivable $20,000 loans to Black entrepreneurs to start businesses, creating a regulatory framework for cryptocurrency—citing the fact that more than 20% of Black Americans own crypto assets—and investing in educational opportunities, apprenticeships and mentorship programs for Black men while also creating more pathways toward employment, including strengthening the Public Service Loan Forgiveness program to help recruit more Black male teachers.

Small Business Tax Credit: Harris reiterated a $50,000 tax deduction for new small businesses Wednesday, up tenfold from the $5,000 break currently offered, setting a goal of 25 million new small business applications in the first two years of her potential presidential term.

Grocery Prices: The candidate says she would work in her first 100 days to help Congress pass a national ban on “price gouging” for food, give the Federal Trade Commission and prosecutors authority to go after companies they determine to have price gouged, support small businesses in the industry, take a closer look at mergers between big grocery companies and “aggressively” investigate price-fixing in meat supply chains specifically (some economists have questioned the idea that price gouging worsened inflation—or that tighter regulations would help). On Wednesday, Harris stood by her idea of a “federal ban on price gouging” to “take on bad actors who exploit emergencies and drive up grocery prices.”

Housing Costs: Harris wants to provide $25,000 in down payment assistance for first-time home buyers and is calling for the creation of three million new housing units within the next four years, proposing a tax credit for developers who build starter homes and investing $40 billion in an “innovation fund” to tackle housing shortages. Harris noted Wednesday the independent Federal Reserve’s decision last week to cut interest rates for the first time since 2020 “will make it just a little easier for families to buy a home” as mortgage rates decline.

Rental Costs: Harris says she would also expand a tax credit for housing developers who build affordable housing rental units, and is calling on Congress to pass legislation to stop allegedly predatory investors who buy up rental homes and collude with each other to raise rental prices.

Child Tax Credit: Harris proposed giving families a $6,000 tax credit for newborns in their first year of life, and restore a pandemic-era tax credit of $3,600 per child for middle and lower-class families.

Taxes: Harris also wants to expand the Earned Income Tax Credit for workers in lower-income jobs, which would cut taxes by up to $1,250, and has previously said she would continue President Joe Biden’s promise not to raise taxes on American households earning $400,000 or less annually, and does support raising taxes for high earners and corporations, according to The New York Times. Harris said Wednesday the breaks will affect more than 100 million taxpayers.

No Tax On Tips: Harris has separately endorsed a plan to get rid of taxes on tips for hospitality and service workers, echoing a proposal by former President Donald Trump—which has been criticized by some experts—though a campaign official told CNN tips would still be subject to payroll taxes, and would include an income limit and guardrails to prevent people like hedge fund managers from taking advantage of the policy.

Prescription Drug Prices: Harris proposed a $35 cap on insulin and capping out-of-pocket expenses on prescription drugs at $2,000 per year, also saying she would speed up Medicare negotiations on the price of prescription drugs—after the Biden administration announced a deal lowering costs on 10 medications—and crack down on anti-competitive practices in the pharmaceutical industry that cause higher prices.

Healthcare: The Harris campaign also announced her intention to work with states to cancel Americans’ medical debt, and she proposed expanding subsidies for Affordable Care Act plans that would save health insurance customers an average of $700 on their health insurance premiums.

Paid Leave: Harris has not released a specific paid leave proposal, but she has previously co-sponsored 12-week paid leave legislation, Politico notes, with Sen. Patty Murray, D-Wash., telling the outlet, “I absolutely believe that when they are in office, we will get a paid leave bill done finally.”

Minimum Wage: Harris called for raising the minimum wage in a Las Vegas speech in August, but her campaign has not specified how high she believes it should be raised.

Fed Independence: Harris has vowed to maintain the Federal Reserve’s independence after Trump said he believed “the president should have at least (a) say” on the Fed’s decisions, with Harris telling reporters, “The Fed is an independent entity and as president I would never interfere in the decisions that the Fed makes.”

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How Does Harris Say She’ll Enact Her Economic Platform?

Harris was asked about how she’d pay for her economic plan in her “60 Minutes” interview on Oct. 7, with correspondent Bill Whitaker noting that while she wants to make the richest Americans pay more taxes, “We’re dealing with the real world here.” Harris expressed optimism that Congress will be willing to pass her economic agenda, arguing, “When you talk quietly with a lot of folks in Congress, they know exactly what I’m talking about, ’cause their constituents know exactly what I’m talking about.” The vice president disagreed with Whitaker saying Congress “has shown no inclination” to back her economic plans, saying she knows “the limitations of government” and claiming, “There are plenty of leaders in Congress who understand and know that the Trump tax cuts blew up our federal deficit.”

Big Number

$3.5 trillion. That’s how much Harris’ economic plan would increase the federal deficit by through 2035, according to an estimate released Oct. 7 by the Committee for a Responsible Federal Budget—less than the $7.5 trillion Trump’s plan would cost. The organization noted its estimate is subject to a “wide range of uncertainty,” and actual figures could range anywhere from not having any impact on the deficit to costing $8.1 trillion at most.

Crucial Quote

“I am a capitalist. I believe in free and fair markets,” Harris declared at a September event hosted by the Economic Club of Pittsburgh, pushing back against her opponent Trump’s attacks classifying Harris as a “communist.”

Tangent

Harris told CNN host Dana Bash in an August interview that her priority on “Day One” as president would be to start implementing her economic agenda. The vice president said one of her “highest priorities is to do what we can to support and strengthen the middle class,” arguing that while she believes the Biden administration has done “good work” on the economy, “there’s more to do.”

How Do Harris’ Policies Compare With Biden’s?

Harris’ economic policy agenda is largely in line with Biden’s economic platform, with some tweaks to emphasize causes that are more important to her, like the child tax credit. “Same values, different vision,” a Harris aide told The Guardian. “She’s not moving far away from him on substance, she will highlight the ones that matter most to her.” The initial plans from Harris’ campaign also suggest the vice president plans to be more aggressive in her policy approaches than Biden, however, as polls have suggested voters hold dim views of how the president has handled the economy. While Biden has also opposed price gouging, Harris’ proposal to enable the FTC and U.S. attorneys to go after companies that hike up prices goes beyond what the president has proposed, Politico notes, and her proposed $40 million investment in the housing crisis is double the amount the Biden administration spent.

Contra

Harris’ economic agenda so far hasn’t gone fully in depth about her proposals, which The New York Times reports is by design. The Times reported before Harris unveiled her agenda that the Harris campaign has adopted a “strategic vagueness” for her economic proposals, believing that being more of a “blank slate” will help ward off attacks and attract more support from business groups.

How Do Harris’ Policies Compare With Trump’s?

Trump’s economic agenda is largely focused on raising tariffs on imported goods, which Harris has said she opposes. The ex-president has also called for cutting taxes and regulations in hopes of lowering inflation, including lowering the corporate tax rate, and has encouraged increasing oil production in order to lower energy prices. In addition to his “no tax on tips” proposal that Harris has also endorsed, Trump has called for ending taxes on Social Security benefits, which Harris has not yet responded to. Experts believe the ex-president’s proposal could speed up Social Security and Medicare becoming insolvent, with the Committee for a Responsible Federal Budget projecting exempting taxes on benefits would result in Social Security and Medicare receiving $1.6 trillion less in revenue between 2026 and 2035. The Trump campaign opposed reports of Harris’ economic proposals in September, with spokesperson Steven Cheung saying in a statement, “Kamala Harris can’t hide from her disastrous record of skyrocketing inflation … Americans are struggling under the Biden-Harris economy, and now she wants to gaslight them into believing her bald-faced lies.”

Big Number

46%. That’s the share of voters who trust Harris more to handle the economy, according to an October New York Times/Siena College poll, versus 48% who trust Trump more. While Trump still maintains a narrow lead, recent polling has broadly shown voters are warming up to Harris on the economy, with polls on who voters prefer on the issue going from being strongly in Trump’s favor to more of a toss up. Trump’s lead in the Times’ polling on the economy has gone down by three points since September, the publication noted. A Washington Post analysis of five polls found that while Trump still leads on the economy by an average of six points, that’s narrowed from a 12-point lead that the ex-president held against Biden before the president dropped out of the race.

Key Background

Harris became the presumptive Democratic presidential nominee in July after Biden stepped down suddenly from the presidential race, following weeks of pressure over mounting concerns about his mental fitness. While the vice president has quickly garnered Democrats’ support and risen in the polls, Harris released few concrete policy proposals in the first few weeks of her campaign—drawing some criticism as a result. The vice president has made releasing a platform on economic proposals her first priority, delivering a speech earlier in August laying out her economic platform that marked the most substantive remarks she had given on policy so far. Her focus on the economy comes as polling has repeatedly shown it’s the most important issue to voters in this election cycle, with the vice president hoping to attract support amid low approval ratings for Biden’s handling of the economy. Harris’ August 16 speech also came days after news that inflation fell in July to its lowest point in more than three years, with federal data showing inflation at 2.9% in July, the first time it’s been below 3% since March 2021.

Further Reading

ForbesHow Would Donald Trump And Kamala Harris Change Your Taxes? Here’s What To Know.By Alison Durkee
ForbesKamala Harris Defends Biden Admin’s Economic Record In First Big Interview—But Says ‘More To Do’By Alison Durkee
ForbesHow The Economy Really Fared Under Biden And Trump–From Jobs To InflationBy Derek Saul
ForbesWhat Is Unrealized Capital Gains Tax? Unpacking Kamala Harris-Backed Proposal On Ultra WealthyBy Derek Saul
ForbesBiden Administration Strikes Deal To Cut Cost Of Expensive Medicare DrugsBy Siladitya Ray

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