Kamala Harris on Friday outlined proposals to cut taxes for most Americans, ban “price gouging” by grocery shoppers and build more affordable housing, all part of an “opportunity economy” she plans to pursue if she wins the White House.
In her first major economy-focused speech as a Democratic presidential candidate, Harris promised to launch a new child tax credit of up to $6,000 for families with infants, cut taxes for families with children and lower the cost of prescription drugs.
The Vice President also called for construction of 30 lakh new housing units in four years and tax incentives to home builders who construct houses for first-time homebuyers.
Harris told supporters at a rally in North Carolina that the US economy is strong, but prices are still too high. She said her main focus as president would be on the middle class. North Carolina is a state she hopes to win in the November 5 election.
“Together we will build what I call the opportunity economy,” she said. “Building the middle class will be a defining goal of my presidency because I firmly believe that when the middle class is strong, America is strong.”
His agenda is likely to face resistance from both corporations and Congress, which rejected similar proposals from President Joe Biden.
Harris said she would lay out more details about her economic plans in the coming weeks. Her goal is to compare favorably with her opponent, Republican Donald Trump, on broad economic values, particularly on tariffs and taxes.
The former president has proposed imposing new tariffs on imports, which Harris has rejected.
“He wants to impose a national sales tax on everyday products and basic necessities that we import from other countries,” Harris said. “This would devastate Americans.”
“It would mean higher prices on every daily necessity: a Trump tax on gas. A Trump tax on food. A Trump tax on clothing. A Trump tax on over-the-counter drugs.”
In a call with reporters on Friday, Trump economic advisers Kevin Hassett and Stephen Moore argued that Harris’ proposals would increase inflation and harm the economy. They said the proposal to offer up to $25,000 to first-time homebuyers would do nothing but raise home prices.
Republicans blame Biden and Harris for presiding over an economy in which prices have risen and blame their policies for fueling inflation.
Harris’s plans aim to address this problem by appealing to a broader segment of working people, who often view Republicans as better economic stewards and are concerned about both high costs and their economic prospects.
Some of his policies, including those related to housing and grocery stores, have been attacked by Republicans and some industry groups as ill-considered and excessive liberal populism.
The nonpartisan Committee for a Responsible Federal Budget estimated that Harris’ economic plan would increase the deficit by $1.7 trillion over a decade, and that number could rise to $2 trillion if temporary housing policies were made permanent.
Food and accommodation
Harris’s plan includes a federal ban on price gouging on food and groceries, which her campaign says is intended to prevent large corporations from unfairly exploiting consumers while earning excessive corporate profits.
Campaign officials said that as president she would direct the Federal Trade Commission to impose “severe penalties” on companies that violate the new price gouging limits.
“I know the vast majority of businesses are creating jobs, contributing to our economy and playing by the rules,” Harris said. “But some aren’t, and that’s just not right. And when that happens, we need to take action.”
Progressive economic ideas are quite popular among voters, but passing them into law has proven difficult. Most of Harris and Trump’s economic priorities require winning majority support in Congress. The child tax credit bill passed the House of Representatives but was stuck in the Senate this year.
Her plan includes a number of tax incentives and other measures to encourage home building for first-time homebuyers and a $25,000 credit for such buyers. Harris also aims to expand rental assistance, prohibit rental price fixing, and prevent Wall Street firms from buying homes in bulk.
Harris is also pushing to reduce health care costs, canceling medical debt and highlighting how the Biden administration reduced the prices of the 10 best-selling drugs used by Medicare by up to 79%.
Harris is fulfilling Biden’s promise not to raise taxes on people making $400,000 a year or less. Her campaign wants to draw a contrast on taxes with Trump, who cut the corporate tax rate from 35% to 21% and implemented other tax breaks that are set to expire next year. Trump has promised to make the tax cuts permanent.