Vice President Kamala Harris’s policies are designed to enhance economic opportunity for low-to-middle-income Americans while focusing on higher tax rates for the nation’s wealthiest individuals. These initiatives aim to support the broader goal of achieving the “American Dream” for more people. Here’s an expanded look at the key components of Harris’s proposed policies and their potential impacts:
Increasing Disposable Income and Minimum Wage
Kamala Harris has advocated for raising the national minimum wage from the current $7.25 per hour. Although the exact increase has not been specified, her previous proposal recommended a $15 per hour minimum wage. The goal is to boost the income of low-wage workers, but this move has sparked debate. Critics like Wayne Winegarden, Senior Fellow at the Pacific Research Institute, argue that such an increase might lead to job losses or reduced hours for some employees. They contend that the increase, although well-intentioned, could disproportionately affect those who are least able to absorb the economic impact.
Enhancing Wealth Building and Small Business Support
As Vice President, Harris supported significant federal investment in small businesses, with $163 billion in federal contracts awarded, including $70 billion to businesses owned by socially and economically disadvantaged communities in 2022. This support aims to foster entrepreneurship and economic independence, potentially offering a pathway to the American Dream for many aspiring business owners.
Tax Policy Adjustments
Harris’s tax policy proposals include:
- Refundable Tax Credits: A 2018 proposal introduced by Harris suggested a refundable tax credit of up to $6,000 annually for families earning under $100,000, and $3,000 for single filers under $50,000. This would provide direct financial relief to lower-income families.
- Increased Marginal Tax Rates: Harris supports raising the marginal income tax rate to 39.6% for the top 1% of earners. Additionally, she proposed a 4% “income-based premium” tax on households earning over $100,000 to fund Medicare-for-All. These measures are designed to ensure that higher earners contribute a fairer share towards funding public services and social programs.
Business Regulation and Corporate Taxes
Harris has proposed increasing regulations on businesses to enhance worker protections, including classifying more workers as employees rather than independent contractors. This change aims to provide additional benefits and security for workers. Additionally, she supports raising the corporate tax rate from 21% to 35% and closing tax shelters for offshore corporate income, which would increase revenue from corporations and potentially level the playing field.
Education and Student Loan Debt
Harris has championed measures to alleviate student loan debt, including canceling loans for those in financial hardship or with repayment plans older than 20 years. This contrasts with her 2020 proposal, which focused on forgiving debt only for Pell Grant recipients who started and maintained a business in a disadvantaged community. The revised approach seeks to make higher education more accessible and less burdensome for graduates.
Healthcare Expansion
Harris supports expanding the Affordable Care Act and exploring Medicare-for-All initiatives. Her aim is to reduce out-of-pocket costs and enhance benefits for low-income older adults and individuals with disabilities, addressing a critical area of financial strain for many families.
Affordable Housing Initiatives
In June, Harris announced $85 million in federal funding aimed at reducing housing costs and increasing housing supply through local planning and infrastructure improvements. Additionally, she proposed legislation in 2018 offering tax credits to renters earning less than $100,000 who spend more than 30% of their income on rent and utilities. These initiatives are designed to make homeownership more attainable and address housing affordability.
Social Security and Retirement
Harris supports raising taxes on household incomes exceeding $400,000 to expand Social Security benefits. This proposal seeks to enhance coverage for older adults, people with disabilities, and low-income seniors, aiming to provide more robust financial support in retirement.
Conclusion
Kamala Harris’s policies reflect a focus on increasing economic opportunity and support for lower-to-middle-income earners through various channels, including wage increases, tax adjustments, and enhanced public services. While her approach includes higher taxes for the wealthiest individuals and increased regulations on businesses, these measures are intended to support broader economic stability and access to the American Dream. The effectiveness of these policies will depend on their implementation and the broader economic context in which they are enacted.
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