Here’s what’s in Kamala Harris’s plan for the economy
Vice President Harris on Friday unveiled several ambitious proposals as part of her economic plan if she wins the presidency this year.
The proposals range from cutting taxes, boosting housing construction and a federal ban on grocery price gouging. Harris’s campaign says the proposals mark just one part of her economic plan and will be a priority for her first 100 days in office, if elected.
Here are some of the highlights from the batch, along with other notable vows the vice president has made on the campaign trail.
Boosting the Child Tax Credit
Harris’s plan calls for beefing up the Child Tax Credit (CTC) to provide a $6,000 tax cut to families with newborn children, as Democrats have sought to drive a contrast with Republicans on the issue in recent weeks.
The plan would allow for “$6,000 in total tax relief for middle-income and low-income families” for the first year of their child’s life, according to a campaign fact sheet. It also calls for the restoration of an expansion to the CTC that was passed as part of a sweeping coronavirus relief package in 2021 known as the American Rescue Plan, pressing for a $3,600 per child tax credit for some families.
The plan comes not long after Senate Republicans blocked a bill earlier this month that sought to raise the CTC amid some concerns over the work requirements for recipients.
The plan also calls for expanding the Earned Income Tax Credit to cover those with lower-income jobs who aren’t raising children.
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‘Price gouging’ ban
The plan calls for what it described as the “first-ever federal ban on price gouging on food and groceries,” though it doesn’t offer much detail as to how the proposal would be carried out.
The proposal will be part of a larger effort aimed at lowering grocery costs and tackling inflation. The plan also calls for setting rules to ensure corporations “can’t unfairly exploit consumers to run up excessive profits on food and groceries,” as polls show inflation continues to be a top-of-mind issue for voters in the months leading up to the November presidential election.
The plan additionally calls for “new authority” for the Federal Trade Commission (FTC) and state attorneys general “to investigate and impose strict new penalties on companies that break the rules.”
Expanding affordable housing
Harris’s plan pushes for the construction of 3 million new housing units over the next four years, along with what it described as the “first-ever” tax incentive for building starter homes for first-time homebuyers.
The plan calls for an expansion to an existing tax credit for businesses that build affordable rental housing, as well as a $40 billion federal fund to help boost construction. The plan also details a proposal to make some “federal lands eligible to be repurposed” for new and affordable housing developments.
The plan presses for the passage of the Stop Predatory Investing Act, which is aimed at countering rising home prices by targeting tax breaks for investors who purchase 50 or more single-family rentals, in addition to the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, which would give the FTC more power to crack down on rent price coordination among property managers and landlords.
Helping first-time homebuyers
Another plan Harris proposed builds upon a previous proposal from the Biden administration that sought to provide first-generation homebuyers with $25,000 in down-payment assistance, along with a tax credit for first-time homebuyers.
Congressional Democrats had previously sought to pass similar legislation as part of President Biden’s sweeping Build Back Better agenda toward the start of his presidency, although the larger effort fell apart as the party struggled to unify amid concerns from moderates over the size and cost of the plan.
Harris’s campaign said in a fact sheet that the vice president’s plan seeks to “simplify and significantly expand” the Biden plan “by providing on average $25,000 for all eligible first-time home buyers, while ensuring full participation by first-generation home buyers” and “more generous support for first-generation homeowners.”
Limiting taxes on tips
Harris also voiced support for ending taxes on tips for service and hospitality workers last week, catching some Democrats by surprise after former President Trump pitched a similar plan earlier this summer.
The moment came during a rally Saturday in Las Vegas, where she also vowed to work to raise the minimum wage.
“It is my promise to everyone here, when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers,” Harris said at the rally.
The Committee for a Responsible Federal Budget estimated this week that exempting tip income from federal income, as well as increasing the minimum wage, could add between $100 billion and $200 billion to the nation’s deficits in a 10-year window.
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