On Friday, August 16, Vice President Harris delivered her first speech focusing on the economy as the Democratic presidential candidate in North Carolina. She outlined the economic agenda she hopes to implement if she wins the presidential election in November.
Her proposals include tax cuts, promoting housing construction, and prohibiting price gouging on groceries. Harris’s campaign team stated that if elected, these plans would be a top priority within her first 100 days in office.
Overall, the Vice President’s new economic vision largely mirrors that of President Biden, albeit on a larger scale.
Harris proposed reinstating an expanded version of the child tax credit, allowing for a maximum tax credit of $3,600 per child. This credit was implemented during the 2021 COVID-19 pandemic and expired at the end of that year. Her plan also includes a new initiative to further expand tax credits, providing $6,000 in tax relief for “middle and low-income families” with a newborn in the first year after birth.
Both tax credit proposals would require approval from Congress.
Additionally, Harris’s economic plan calls for expanding the Earned Income Tax Credit to cover those in low-income jobs without dependents.
She also reiterated Biden’s promise not to raise taxes on individuals earning $400,000 or less annually. Her campaign aims to contrast with Trump, who reduced the corporate tax rate from 35% to 21% during his first term and implemented other tax cuts set to expire next year. Trump has pledged to make those tax cuts permanent if re-elected.
In her speech on Friday, Harris acknowledged the “severe housing shortage” in the United States and vowed to construct 3 million affordable housing units for the middle class before the end of her first term to address the housing shortage.
“As president, I will work with the industry to build the housing we need, whether it’s rental or homeownership. We will eliminate barriers, reduce red tape, including at the state and local levels,” Harris said.
Her new housing proposal builds on a series of plans outlined by the Biden administration in recent years. Biden had previously called for the construction of 2 million new homes.
Harris also promised to provide $25,000 in down payment support for first-time homebuyers if elected president, along with a $10,000 tax credit for first-time homebuyers.
She further pledged to offer new tax incentives for builders constructing homes for first-time homebuyers, although details of this plan were not provided by her aides and would also require congressional approval.
Former President Trump’s economic advisers Kevin Hassett and Stephen Moore pointed out in a call with reporters on Friday that Harris’s proposals could exacerbate inflation, and offering up to $25,000 to first-time homebuyers may only drive up housing prices.
In her campaign speech on Friday, Harris highlighted the high prices Americans are paying for groceries. Republican presidential candidate and former President Trump also mentioned this in his Thursday speech.
According to the Consumer Price Index data, the cost of groceries for Americans last month rose by 21% compared to when Harris took office in 2021. Grocery prices have surged by more than 25% since February 2020.
Public opinion surveys show that inflation remains a top concern for voters in the months leading up to the November presidential election.
Harris’s economic plan includes combating price gouging on food through a federal ban.
The plan also involves giving the Federal Trade Commission (FTC) and state attorneys general “new powers” to investigate companies violating regulations and impose strict new penalties.
Harris emphasized the sharp rise in household prices since the outbreak of the pandemic.
“We all know that supply chain closures and disruptions during the pandemic led to price increases; while supply chains have improved, prices are still too high,” she said.
Harris’s healthcare agenda includes expanding the cap on insulin costs to all patients, not just elderly Americans. She is also pushing for reducing healthcare costs and canceling medical debt.
(This article referenced reports from CNN, The Wall Street Journal, The Hill, and Reuters)