Despite the enthusiasm for the start of the electoral campaign of Kamala Harris, US Democrats already know it: over the next few weeks the euphoria over the "novelty" will increasingly wane and the fight for the White House will once again become a no-holds-barred head-to-head. The victory of one (Harris) or the other (Donald Trump) will be influenced by an issue that has always been in first place for Americans: the trend of the economy. And in this area the Democrats still have a lot of ground to make up. Polls also confirm this, according to which on the economy, Trump would surpass Harris by as many as nine points. However, there is one aspect that could work in favor of the Democratic candidate: 72% of those interviewed by ABC say that the US economy is "not doing well", but 60% think that it is not Harris's fault but Biden's, considering that the vice president has limited influence on the economic policies of her Commander in Chief.
However, the former attorney general of California has no intention of being caught unprepared when the going gets tough and this is why a few days ago in Raleigh, North Carolina, one of the main swing states, she presented a economic plan that focuses entirely on the middle class, the most affected by inflation and puts large companies in its sights. “This is a set of bold actions that will address some of the most critical issues facing American families right now and will aim to strengthen their financial security,” the Harris campaign said in a statement.
How the US economy is doing
Before going into detail about the economic plan that Harris would like to implement in her first 100 days in the White House, it is necessary to understand the real state of health of the Stars and Stripes economy which is preparing for the first rate cut by 25 basis points by the Federal Reserve scheduled for the meeting on 17/18 September. While waiting to hear what the bankers, and especially Jerome Powell, will say in Jackson Hole and despite the citizens' negative perception, the latest data released in recent days are anything but negative and say that for the first time since 2021 US inflation has stopped below 3%, while in the second quarter of 2024, the economy grew by 2,8% annualized, clearly beating analysts' expectations. Some shadows instead on the job market, with the unemployment rate, which rose to 4,3% from 3,7% at the beginning of the year, with available jobs at the lowest levels in the last three years.
Kamala Harris' economic plan
A corporate tax of 28%, but also a federal ban that will require large companies not to increase the cost of their products beyond a certain threshold. Not only that, hard blows could also come against the big names in Pharma with the aim of making medicine prices accessible. And then eyes on families with measures aimed at helping them recover part of the purchasing power lost during and after the Covid-19 pandemic. “Costs are still too high, for many people, no matter how much they work, it has become difficult just to get ahead,” said the Democratic candidate during her rally in North Carolina. The slogan of the program is effective: “opportunity economy,” “where everyone can compete and have a real chance to succeed,” Harris added.
Wall Street eyes 28% corporate tax
One of the main measures promised by the current US vice president in case of victory in the November 5 elections is increasing the corporate tax rate from 21% to 28%. A measure that according to the Committee for a Responsible Federal Budget, a non-partisan group, could reduce the US deficit by 1 trillion dollars in a decade. But above all, “a fiscally responsible way to put money back into the pockets of workers and ensure that billionaires and big corporations pay their fair share,” added Harris campaign spokesman James Singer.
Many analysts also highlight the enormous distance that exists on this issue between Trump and Harris. In fact, it was the former tycoon, during his years in the White House, who reduced the tax rate on companies from 35% to 21%, increasing other tax breaks which will expire next year. All measures that the former president now promises to make permanent.
Food giants and Big Pharma in Harris' sights
In order to support families affected by inflation, Harris has decided to target Big Pharma and food giants.
The Democratic candidate has in fact claimed the successes of the current Biden administration in reduction in drug prices, culminating in the "historic cost cutting" of ten basic medicines for the elderly. And on food, the project is to reduce the costs of food products and other basic necessities through the imposition of a unprecedented federal ban on large corporations.
Then the direct attack on the policies promised by rival Donald Trump. According to the vice president, the tycoon's duties on imported products “will devastate Americans”. “It will mean higher prices on all everyday goods. A Trump tax on gas, a Trump tax on food, a Trump tax on clothing, a Trump tax on over-the-counter drugs,” she added, accusing her opponent of wanting “new cuts for billionaires and corporations,” while she aims to alleviate costs for the middle and lower classes. “When the middle class is strong, America is strong,” she emphasized.
The other measures promised by Harris
Tax increases will only affect the rich. Those who earn less than 400 thousand dollars a year will not be affected, on the contrary. Harris also promised the cancellation of taxes on tips (also proposed by Trump who not surprisingly accuses her of plagiarism), a subsidy of 25 thousand dollars for the purchase of the first home, 6 thousand dollars for newborns up to one year of life and the restoration of the Child tax credit, a measure desired by Biden and which expires in 2021.
