KazPost

Kazakhstan News
Wednesday, Apr 24, 2024

Kamala Harris' economic policy: Roll back tax cuts, expand health care and middle-class tax breaks

Kamala Harris' economic policy: Roll back tax cuts, expand health care and middle-class tax breaks

Much like Biden, Harris is an advocate of higher taxes on businesses and high-income households, economists say.

Sen. Kamala Harris has a reputation as a prosecutor who cut both ways. Similarly, her positions on economic issues ranging from affordable housing to Wall Street have elicited muted praise — along with some caveats.

As Joe Biden’s choice for vice president, Harris, a California Democrat, shares many of the former vice president’s economic priorities, but she has also shown a willingness to go her own way or reach into the more progressive end of the party’s toolkit on a broad array of financial and economic hot-button topics.

The pandemic


“I think her policy perspective is very consistent with the need to help hard-pressed households that have been slammed by the pandemic,” said Mark Zandi, chief economist at Moody’s Analytics. “I think she’s focused on the right things.”

Most notably, Harris supported the idea of a $2,000 monthly stimulus check during the pandemic, a policy also advocated by Sen. Bernie Sanders, I-Vt., and former Democratic presidential contender Andrew Yang.

“The platform of the day that’s going to get people's attention has to be pandemic policy,” said Joseph Mason, professor of finance at Louisiana State University. “The $2,000 per person makes complete sense. This is a pandemic. This is something very, very rare."

Mason also said that Harris’ pledge to fight for social and racial justice has pandemic-specific ramifications, given that low-income and communities of color have been disproportionately hit by COVID-19. Democratizing access to a vaccine, when one becomes available, by insuring that low-income and essential workers are near the front of the queue could provide Harris with populist support and momentum for more wide-ranging health, safety and security initiatives, he said.

“There's a tremendous opportunity to promote social unity in line with meaningful public health goals by making sure that grocery store workers, fast-food workers — all these people who have been in touch with the public, toiling away to provide for their families — can get it,” Mason said. “You’re showing that there’s not an elitism. That would be, to me, a tremendous public health and social initiative. You can leapfrog from that into health care access.”

Health care costs


In the short term, Harris pledged to shore up the Affordable Care Act, and outlined a 10-year transition plan to overhaul the nation’s piecemeal health care system and rein in soaring costs projected to reach as much as $6 trillion a year by the next decade.

Initially a proponent of the “Medicare for All” cause championed by Sanders, Harris later backpedaled (a reversal some pundits said caused her to lose ground in the primary fight) and introduced a hybrid that would include a public Medicare option while still letting for-profit insurers compete.

Harris touted many proposals first pushed by Sanders to pay for the program, including changes to income, payroll and estate taxes to make them more progressive in addition to higher taxes on businesses and the richest Americans.

Wall Street


While similar to Sanders’ overall model for paying for an overhauled health care system, Harris tweaked her version by lopping out an incremental income tax increase she said would hit the middle class too hard and replacing it with a tax on Wall Street trades: Stock trades would be taxed at 0.2 percent, or $2 per $1,000, and bond trades would be taxed at half that.

Experts say this would have to be done strategically to avoid inadvertently squashing financial activity or driving it to offshore tax havens. “I do think you have to be very careful how that’s designed and implemented, but I definitely think that’s a place we should look for additional revenue,” Zandi said.

“We found that there is reason to be cautious about the design of any financial transaction tax, particularly if you design it so it can be easily evaded,” said Garrett Watson, senior policy analyst at the Tax Foundation. “Especially looking at that as a revenue source for health insurance, you need that to be a stable source of revenue."

Housing Affordability


Harris advocated for helping people struggling with the high cost of rent, proposing a tax credit for renters paying more than 30 percent of their income in rent and utilities. “Prior to the pandemic, one of the key policy concerns was around the affordable housing crisis, both for rent and homeownership,” Zandi said. “It was contributing to the increase in homelessness, which she obviously saw firsthand in California.”

But economics experts caution that this policy only addresses half the problem: There is still a nationwide shortage of housing stock attainable for many lower- and middle-income households, and subsidizing rents could have an unintended consequence of driving those costs higher. “I’d be paying more attention to increasing the supply of affordable housing as opposed to helping support rental payments,” Zandi said.

“I think it is good to get off this platform of everyone should own a home … so rental assistance is worthwhile,” Mason said. “Anytime you give a subsidy like that, you’re aiding a market … You need to make sure that just doesn’t leak out the other side in profit,” he said. “It’s a complex web of incentives.”

Income and taxes


Harris has stated support for a national $15-an-hour minimum wage, and said she wants to penalize companies that skirt the rules on worker pay and “empower” labor unions that have been weakened by “right to work” laws.

But a much higher-profile priority for Harris is the reversal of the GOP-backed Tax Cuts and Jobs Act decreases in tax rates for businesses and rich Americans. “Much like Biden, she’s an advocate of higher taxes on businesses and higher-income, wealthy households,” Zandi said.

The platform laid out on Harris’s website promised to “reverse President Donald Trump’s trillion-dollar tax cut for big corporations and the top 1 percent.” Those funds would go toward one of her signature policy initiatives: a refundable tax credit that would effectively function as a big expansion of the Earned Income Tax Credit.

The LIFT (Livable Incomes for Families Today) the Middle Class Act, which Harris introduced in 2018, would give a tax credit of up to $6,000 for households with annual income under $100,000.

On this issue, Watson said Harris was pushing the envelope further than her would-be boss. “We haven't seen something of that scope or scale from Biden,” he said. “One perceived advantage is you take something like that and make it permanent… and move the ball forward on what they think is good tax policy in the long run.”

Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×