During her initial seminal speech on economy as the Democratic presidential contender, Kamala Harris detailed plans to introduce reductions in taxes for the majority of US citizens, lead a crackdown on predatory pricing in supermarkets, and increase the construction of affordable accommodation. This forms part of her agenda, dubbed as ‘opportunity economy’, which she aims to execute if she successfully ascends to the presidency.
Ms Harris, aiming to win North Carolina in the upcoming election on November 5th, assured her advocates that although the American economy showcases significant strength, the inflation rate continues to hover at an unacceptable level. She expressed her determination to concentrate her presidency on bolstering the middle-class economy, should she be elected. She announced that the details of her policy would be periodically revealed.
Harris is setting sights on contrasting her economic values from those of her opposite number, Republican Donald Trump, focusing primarily on tax and tariff policies. Harris strongly dismissed the ex-president’s proposition for a blanket increase of import tariffs. She expressed her concern that such a policy would inevitably burden the American people with heightened costs for day-to-day essentials.
However, obstacles may lie ahead for her proposed agenda, as similar plans have previously been shot down by both technically inclined businesses and the Congress, during President Joe Biden’s term.
On a discussion held with journalists on Friday, Trump’s financial advisors, Kevin Hassett and Stephen Moore claimed that the propositions forwarded by Ms Harris have potential to escalate inflation and harm the economy. They were sceptical of her plan to provide upto $25,000 (£22708) to newbie homeowners, considering it would merely inflate the property prices.
Ms Harris’ policies have been observed by Republicans and certain industry associations as excessively liberal and poorly thought through. There have been allegations against her for overseeing an economic structure where prices have evidently surged, as they link these changes with her policies stimulating inflation. Yet, they are devised with a view to captivate a wide range for the employment sector who generally deem Republicans to be superior economic administrators and they express apprehension related to inflated costs and their economic future.
The bipartisan Committee for a Responsible Federal Budget has projected an increase in deficits by about $1.7 trillion over ten years as a result of Ms Harris’ economic strategy, which may exceed to $2 trillion if temporary policies regarding housing are given a permanent status. Her action plan incorporates prohibition of price exploitation on food items and groceries on a federal level, intending to prevent corporations from taking undue advantage of consumers while reaping over-the-top business profits.
She has also pledged to impose serious penalties on rule breaking companies through the Federal Trade Commission, to counter price exploitation. “We must act when it is found that not all businesses are contributing towards job creation, aiding our economy and abiding by the rules,” stated Ms Harris.
The common electorate often favour progressive economic approaches but their transformation into legislation has been challenging. The economic preferences of Trump and Harris necessitate a majority approval in the Congress for implementation. During this year, a proposed bill for child tax credit was endorsed by the House of Representatives but faced opposition in the Senate.
Ms Harris’ strategy also comprises a range of tax incentives and diverse plans to foster construction for first-time homeowners and a credit of $25,000 for such new buyers. It is her aim to broaden rent assistance, illegalize rent manipulation and prevent firms from Wall Street to purchase homes in large numbers.
In addition, healthcare cost reduction, medical debt forgiveness and emphasising how the Biden administration has successfully negotiated a reduction in prices of the 10 most popular prescription medicines by 79 per cent, used by Medicare, are included in her strategy.
In line with Mr Biden’s commitment, Ms Harris assures that there will be no tax increase for individuals earning $400,000 or less annually. The goal of her campaign is to set a clear distinction on tax policies compared to Mr Trump. The latter reduced the corporate tax from 35% to 21% and launched several tax reductions, which are due to end next year. However, Mr Trump has pledged to make these tax cuts lasting, as reported by Reuters. Copyright Thomson Reuters 2024.