Everything You Should Know About Vice President Kamala Harris’ Economic Plan

Vice President Kamala Harris has unveiled a comprehensive economic plan designed to tackle inequality, stimulate growth, and support working families and entrepreneurs inside her New Way Forward initiative. Key elements of the Democratic nominee’s proposal include lowering food and grocery costs, reducing taxes for the working class, and making healthcare more accessible for millions of Americans.

One of the plan’s standout features is the restoration of the Expanded Child Tax Credit, which could provide up to $3,600 to assist over 100 million American families. Harris notes that the expansion—facilitated by her tie-breaking vote—represents one of the largest tax cuts ever enacted for the middle class, with 70% of parents reporting reduced financial stress thanks to the monthly relief.

Additionally, the 59-year-old politician is calling on Congress to enact the first-ever federal ban on price gouging, establishing clear guidelines to prevent large corporations from exploiting consumers during crises to inflate profits on food and groceries.

In a 60 Minutes interview with Bill Whitaker on Oct. 7, Harris expressed confidence that Congress would support her plan for creating fair and affordable economic conditions in America, emphasizing the need for the wealthy to contribute to its funding. Notably, her plan is projected to increase the debt by $3.5 trillion by 2035, in contrast to the $7.5 trillion increase anticipated under Trump’s plan.

Here’s a closer look at the big components of Kamala Harris’ New Way Forward plan and what you need to know about this significant proposal as we approach the November election.

Grocery Prices

Harris pledged to work within her first 100 days to secure a national ban on food price gouging. She plans to empower the Federal Trade Commission and prosecutors to target companies engaged in price gouging, support small businesses in the food industry, scrutinize mergers among major grocery chains, and investigate price-fixing in meat supply chains. While some economists debate the impact of price gouging on inflation, Harris remains committed to her proposal for a federal ban to curb exploitative practices during emergencies.

Housing Costs

Harris seeks to provide $25,000 in down payment assistance for first-time homebuyers and aims to create three million new housing units over the next four years. Her plan includes a tax credit for developers building starter homes and a $40 billion investment in an innovation fund to address housing shortages. She highlighted the recent Federal Reserve interest rate cut as a positive step to make home buying more accessible.

Rental Costs

Harris also aims to expand tax credits for developers of affordable rental units and urges Congress to pass legislation targeting predatory investors who drive up rental prices by purchasing homes en masse.

Child Tax Credit

She proposed a $6,000 tax credit for newborns in their first year and restoring the pandemic-era tax credit of $3,600 per child for middle- and lower-income families.

Taxes

Harris plans to expand the Earned Income Tax Credit for low-wage workers, potentially reducing taxes by up to $1,250. She has reiterated her commitment to maintaining no tax increases for households earning $400,000 or less, while supporting higher taxes for wealthier individuals and corporations. She stated that these measures would benefit over 100 million taxpayers.

No Tax On Tips

Harris has endorsed eliminating taxes on tips for hospitality and service workers, aligning with a similar proposal from former President Trump. However, a campaign official clarified that tips would still be subject to payroll taxes, with safeguards to prevent misuse.

Prescription Drug Prices

She proposed a $35 cap on insulin and limiting out-of-pocket prescription drug expenses to $2,000 annually. Additionally, Harris aims to expedite Medicare negotiations for drug prices and address anti-competitive practices in the pharmaceutical industry that contribute to rising costs.

Healthcare

Harris intends to collaborate with states to eliminate medical debt for Americans and expand subsidies for Affordable Care Act plans, potentially saving health insurance customers an average of $700 on premiums.

Paid Leave

While Harris has not released a specific paid leave plan, she has previously co-sponsored legislation for 12 weeks of paid leave, expressing confidence that a bill will be passed during her presidency.

Minimum Wage

Harris wants to raise the minimum wage but has not detailed her proposed amount.

Fed Independence

Harris has committed to preserving the Federal Reserve’s independence, countering former President Trump’s assertion that the president should influence Fed decisions. She emphasized that as president, she would not interfere with the Fed’s autonomy.

Small Business Tax Credit

Harris has proposed a substantial increase in the tax deduction for new small businesses, raising it from $5,000 to $50,000. She aims to generate 25 million new small business applications within the first two years of her potential presidency.

SEE ALSO:

Questioning Kamala Harris’ Racial Identity Reflects A Narrow ‘Either/Or’ Approach

Kamala Harris Believes Her Economic Plan As President Will Get Through Congress