What we know so far
Top line
Vice President Kamala Harris is expected to provide more details on her economic agenda in a speech in North Carolina on Friday. Early reports and campaign statements on her policies suggest the Democratic nominee will focus on lowering food prices, tackling housing costs and more, while also keeping an eye on strengthening the middle class.
Vice President Kamala Harris speaks at a campaign rally in Las Vegas on August 10.
Key data
Food prices: The Harris team said Wednesday that the candidate will work in her first 100 days in office to ensure that Congress passes a national ban on “price gouging” on food and grocery products, give the Federal Trade Commission and state attorneys general the power to take action against companies that find price gouging, support small businesses in the industry, take a closer look at mergers between large food companies and “aggressively” investigate price fixing in the meat supply chain in particular.
Housing costs: Harris will also announce measures to reduce housing costs on Friday, her campaign team said. According to a report by the Guardian, she will support plans to fund more affordable housing and build communities that are more resilient to the effects of climate change.
Steer: Harris will keep President Joe Biden’s promise not to raise taxes on American households earning $400,000 or less annually, but supports tax increases on top earners and corporations, according to the New York Times.
No tax on tips: Harris endorsed a plan to eliminate the tax on tips for hospitality and service workers, echoing a proposal by former President Donald Trump that was criticized by some experts. However, a campaign official told CNN that tips would still be subject to payroll taxes and there would be an income limit and safeguards to prevent people like hedge fund managers from profiting from the rule.
Child allowance: As Politico reports, Harris wants to increase the child tax credit and has chosen Minnesota Governor Tim Walz, among other reasons, because he successfully implemented the child tax credit and took paid leave in his state.
Paid vacation: Harris has not put forward a specific proposal for paid leave, but she previously co-sponsored a bill with Senator Patty Murray (D-Washington) for 12 weeks of paid leave, Politico notes. She told the magazine, “I firmly believe that when they’re in office, we’ll finally get a paid leave bill in place.”
Prices for prescription drugs: The Harris campaign said Wednesday that Harris will also address measures on prescription drug costs in her speech on Friday, after the Biden administration announced Thursday that it had reached an agreement to reduce Medicare costs for 10 widely used prescription drugs.
Minimum wage: Harris called for an increase in the minimum wage in a speech in Las Vegas in early August, but her campaign team has not commented on how high they think it should be.
Independence of the Fed: Harris has pledged to protect the independence of the Federal Reserve after Trump said he believes “the president should at least have some say” in the Federal Reserve’s decisions. Harris told reporters: “The Fed is an independent institution and as president I would never interfere in the Fed’s decisions.”
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How do Harris’ policies compare to Biden’s?
Harris’ economic agenda is expected to be broadly in line with Biden’s economic program, although she will likely have different policy priorities than the president, such as paid leave. “Same values, different vision,” a Harris aide told The Guardian. “In terms of content, she won’t stray far from him, she’ll emphasize the points that are most important to her.” But Harris’ campaign’s initial plans on price gouging suggest the vice president wants to be more aggressive in her policy than Biden, as polls show voters have a negative opinion of the president’s handling of the economy. While Biden has also spoken out against price gouging, Harris’ proposal to allow the FTC and U.S. prosecutors to go after companies that raise their prices goes beyond what the president has proposed, Politico notes.
Contra
While Harris will provide more details on her economic proposals on Friday, her speech is expected to be fairly sparse, which is intentional, according to the New York Times. The Times reports that Harris’ campaign has chosen “strategic vagueness” in its economic proposals, believing that a “blank slate” can fend off attacks and gain more support from business groups.
How do Harris’ policies compare to Trump’s?
Trump’s economic agenda largely focuses on raising tariffs on imported goods, which Harris says he is opposed to. The former president has also called for tax cuts and regulatory measures to reduce inflation, including a cut in the corporate tax rate. He has also called for increasing oil production to lower energy prices. In addition to his proposal to impose “no tax on tips,” which Harris also supports, Trump has called for eliminating taxes on Social Security benefits, to which Harris has not yet responded. Experts believe the former president’s proposal could hasten the insolvency of Social Security and Medicare. The Committee for a Responsible Federal Budget estimates that exempting taxes on Social Security benefits would result in Social Security and Medicare receiving $1.6 trillion less in revenue between 2026 and 2035. The Trump campaign on Wednesday contradicted reports about Harris’ economic proposals. Spokesman Steven Cheung said in a statement: “Kamala Harris cannot hide from her disastrous record of skyrocketing inflation… Americans are struggling with the economy under Biden and Harris, and now she wants to make them believe her blatant lies.”
Large number
42 percent. That’s the share of voters who trust Harris more to get the economy under control, according to a poll published Sunday by the Financial Times and the University of Michigan. In comparison, 41 percent trust Trump more. That’s a drop from July, when Trump was six percentage points ahead of Biden. However, the poll also found that 42 percent believe a Trump presidency would leave them in a better financial position, while only 33 percent said the same for Harris.
Important background
Harris became the presumptive Democratic presidential nominee in July after Biden suddenly withdrew from the presidential race following weeks of pressure amid growing concerns about his mental health. While the vice president quickly won support among Democrats and rose in the polls, Harris released few concrete policy proposals in the early weeks of her campaign — earning her some criticism. Her speech on Friday is likely to be her most substantive policy statement yet. Her focus on the economy comes as polls have repeatedly shown it to be the most important issue for voters this election cycle, and the vice president hopes to win support amid low approval ratings for Biden’s handling of the economy. Harris’ speech also comes days after news that inflation fell to its lowest level in more than three years in July. Federal data released Wednesday show inflation was 2.9% in July, the first time it has been below 3% since March 2021.
More information
