Vice President Kamala Harris has introduced a broad economic plan she claims will support the middle class and small businesses across America.
AP News reported that Harris's economic policy proposal aims to provide significant relief for small businesses while addressing affordable housing and health care.
The proposal, detailed by Harris in a speech in New Hampshire, seeks to enhance the economic framework for middle-class and working Americans. Harris has advocated for an increased small business tax deduction for startup costs, aiming to simplify the entry process for new businesses and boost economic growth.
Part of Harris's economic vision includes setting an ambitious target for the country: she aims for 25 million new small business applications by the end of her first term. This goal is designed to energize the economy and fuel job creation across various sectors.
Harris stated, "It’s essentially a tax cut for starting a small business," highlighting the initiative's potential to reduce financial barriers for emerging entrepreneurs.
Moreover, the Vice President proposes significant changes to the tax code, including raising the long-term capital gains tax rate to 28% for individuals earning more than $1 million annually. This measure targets wealthier citizens in an effort to redistribute economic benefits more equitably.
Her plan also calls for a rise in the corporate tax rate to 28%, aligning with other revenue-raising measures from President Biden's budget. These changes are intended to fund various social programs without adding to the national deficit.
Housing is another critical aspect of Harris's economic strategy. She proposes significant support for first-time homebuyers, including a $25,000 down-payment assistance and a $10,000 tax credit, aimed at making homeownership more accessible.
In addition to housing support, Harris is committed to tackling inflation through measures such as a federal ban on price gouging, aimed at stabilizing prices for essential goods and services.
Harris's plan extends into health care, with proposals to restore and expand the child tax credit to include a new $6,000 credit for newborns. This effort underscores a commitment to supporting families from birth, easing financial burdens early on.
She also advocates for extending Affordable Care Act premium subsidies and expanding cost caps for prescription drugs to make health care more affordable. Regarding the medical debt crisis, Harris plans to expedite Medicare’s drug price negotiations and cancel medical debt for millions, stating she would work with states to "help them avoid falling behind on health care bills in the future."
The economic blueprint further includes the elimination of federal income taxes on tips while ensuring these earnings are still subject to payroll taxes. Harris explained that while tips would remain taxable under payroll guidelines, this move would prevent exploitation of the system by high earners not traditionally reliant on tips, such as hedge fund managers and lawyers.
In her speeches, Harris has emphasized inclusivity, noting, "Our focus includes people in rural communities," thereby addressing the economic disparities that often affect these areas more significantly.
While Harris's proposals are comprehensive and geared toward substantial reform, they require approval from Congress, where they face considerable challenges. The financial implications are significant, as earlier measures from Harris's agenda added $1.7 trillion to the federal deficit over ten years.
The path forward involves navigating complex political dynamics and garnering sufficient support to bring these ambitious plans to fruition, a task that will test Harris's policy-making acumen and her administration's ability to compromise and collaborate across the aisle.
