As the political landscape shifts, Vice President Kamala Harris emerges as the leading Democratic candidate to potentially replace President Joe Biden.
With this possibility, voters are keen to understand her stance on key financial issues and how her platform may shape future economic policies.
Harris’s approach to taxes, healthcare, student loans, and other critical areas could significantly impact household finances.
Tax policies: Changes on the horizon
The impending expiration of several tax breaks post-2025 places tax policies and the federal budget deficit at the forefront of Harris’s agenda.
Without legislative action, provisions from the Tax Cuts and Jobs Act (TCJA) will expire, leading to higher taxes for more than 60% of filers, according to the Tax Foundation.
Harris is expected to align with many of Biden’s tax policies, particularly those targeting wealthier Americans and corporations.
A key question is whether she will maintain Biden’s pledge to avoid raising taxes on individuals earning less than $400,000 annually.
Previously, Harris supported repealing the TCJA’s corporate tax rate cut, proposing a return to a 35% top rate, compared to Biden’s suggested 28%.
Her stance on child tax credits, which she championed during the pandemic, will also be closely watched as she may continue advocating for expanded support for families.
Healthcare: Will ‘Medicare for All’ resurface?
During her 2020 presidential campaign, Harris endorsed a “Medicare for All” plan, aiming to transition all Americans to a Medicare-based health plan over ten years.
However, this ambitious plan may not be a focal point in the current political climate, given the Democratic Party’s preference for more incremental changes to healthcare policy.
Harris is expected to advocate for expansions in Affordable Care Act (ACA) coverage and Medicaid, building on the Biden administration’s efforts to reduce healthcare costs.
Her commitment to women’s health, particularly abortion rights, will likely remain a prominent issue, as she has been a vocal supporter of protecting reproductive rights amidst changing legal landscapes in various states.
Student loans: Continuing the push for debt relief
Harris has been a staunch supporter of Biden’s historic student loan forgiveness initiatives.
During her previous presidential run, she proposed a narrower debt relief plan compared to Biden’s broader approach, which has already forgiven $167 billion in student debt for nearly 5 million Americans.
As Vice President, Harris has focused on combating predatory lending practices and supporting borrowers from for-profit institutions.
Her ongoing efforts to bring relief to student loan borrowers will likely continue, aiming to address the broader economic implications of student debt on young professionals and families.
Income inequality: Addressing the wealth gap
One of Harris’s notable proposals before becoming Vice President was the Lift the Middle Class Act, which aimed to provide up to $6,000 annually to lower- and middle-income workers through tax credits.
This initiative was designed to close the wealth gap and support working-class families, a concern that has only grown as the cost of living rises.
Given the current economic context, Harris might revive similar proposals to offer tax relief to those earning below certain thresholds, addressing the persistent challenges faced by lower-income households.
Housing: Advocating for affordable solutions
Harris has consistently championed affordable housing policies, recognizing the critical need for accessible housing solutions.
Recently, she announced an $85 million grant initiative aimed at reducing housing costs and addressing homelessness.
Her efforts also include a substantial $5.5 billion budget aimed at boosting affordable housing through various programs under the U.S. Department of Housing and Urban Development (HUD).
Her continued focus on housing affordability reflects her commitment to ensuring that all Americans have access to safe and affordable living conditions, a fundamental aspect of economic stability.
Strengthening social safety nets
As a senator, Harris co-sponsored the Social Security Expansion Act, advocating for increased benefits and higher contributions from wealthy Americans. This aligns with her broader goal of protecting and enhancing social safety nets.
Harris has also targeted the gender pay gap with proposals to eliminate discriminatory pay practices. Her plan included fines for companies failing to achieve equal pay certifications, aiming to close the earnings gap, which disproportionately affects women of color.
Finally, a Kamala Harris presidency could bring significant changes in tax policies, healthcare, student loan relief, income inequality, housing affordability, and social safety nets. These potential shifts underscore the importance of understanding her platform as voters consider the future direction of economic policies.
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