By Gabriel Rubin
WASHINGTON – Kamala Harris is planting seeds for U.S. growth, but she might kill some crops in the process.
The presumptive Democratic presidential nominee’s running mate, Minnesota Governor Tim Walz, describes the economy as a garden, rather than a jungle: tend it well and reap the harvest. Her just-emerging agenda includes helping break ground on more U.S. housing and squashing higher food prices. At the same time, spreading price caps and goodies for shoppers risks sowing inflation.
In a speech planned for later on Friday, Harris is set to unveil ways to support the construction of new homes. They include a combination of tax incentives for builders and buyers alongside ways for local governments to streamline cumbersome zoning laws. In many ways, the ideas simply supersize President Joe Biden’s priorities.
He has called for 2 million new homes; Harris is pushing for a million more. Biden proposed a $20 billion fund to cut red tape; his vice president will seek $40 billion. This supply-focused approach, regardless of how big, is sensible: The country’s chronic housing shortage has become severe, at 4.5 million homes, according to online marketplace Zillow. The real estate industry also has backed the administration’s initiatives to spur the rewriting of municipal rules on how land can be used.
The demand side of Kamalanomics is more vote-seeking than sound policy. She intends to roll out yet unspecified ways to target corporate “price gouging,” especially in groceries.
RELATED: Trump attacks Harris policies – and persona – as allies push for messaging shift
Any such controls would have to go through Congress, and there’s little sign that a full-fledged 1970s-style approach is in the offing, mostly because of the stagflation sparked by ensuing shortages and discouraged competition. A generous $25,000 subsidy to first-time home-buyers from Harris threatens to jack up prices, too.
Encouraging consumers to spend isn’t always bad and can have substantive effects. Harris, for example, is championing the revival of the expanded child tax credit enacted temporarily in 2021. In just one year, the policy cut child poverty to 5.2%, the lowest rate ever.
Making it permanent could lead to significantly better outcomes for poor kids, providing a long-term boon for the country. Like successfully cultivating backyard plants, it takes a green thumb to keep the U.S. economy from wilting and to make it blossom instead.
Harris’ economic plan builds on Biden’s, aims for lower costs and taxes
By Nandita Bose
Kamala Harris is laying out proposals to cut taxes for most Americans, ban “price gouging” by grocers and boost affordable housing during her first major economy-focused speech as the Democratic presidential candidate on Friday.
The U.S. vice president is travelling to Raleigh, North Carolina, to outline an agenda for her first 100 days in office, where she will call for expanding the child tax credit to $6,000 for families with newborn children, cutting taxes for families with kids and lower prescription drug costs, Harris campaign officials said.
She aims to draw a contrast with her Nov. 5 election opponent, Republican Donald Trump, on tariffs and taxes, they said. Her agenda may run into resistance from both corporations and Congress, who rejected similar proposals when they came from President Joe Biden.
Harris’ economic agenda broadly mirrors Biden’s but introduces some new homebuying incentives and attempts to control high prices. Democrats are hoping to appeal to a broad segment of the working public who often see Republicans as better economic stewards and are anxious over both higher costs and their economic prospects.
RELATED: Biden ends failing re-election campaign, backs Harris as nominee
Some of her policies, including the ones on housing and groceries, have come under attack as ill-considered and overly liberal populism by Republicans and some industry groups.
Inflation fell to below 3% for the first time in nearly 3- 1/2 years in July, but prices of groceries and consumer goods remain well above their pre-pandemic levels.
The Trump campaign has also been mulling new tax cuts for middle-class households, and Trump proposed eliminating taxes on tipped wages – something Harris did as well in Las Vegas last week.
Progressive economic ideas poll well with voters, but they have proven tough to pass into law. Most of Harris’ and Trump’s economic priorities need to secure majority support in Congress. A child tax credit bill passed the House but stalled in the Senate this year.
Not all elements of Harris’ economic agenda will make it to the Friday speech. Her campaign wants to avoid dividing voters and attracting attacks from business groups over granular details and will be “strategically ambiguous” in areas such as energy, her aides and advisers said.
Harris no longer supports measures from her short-lived 2020 presidential bid such as a fracking ban, or Medicare for All, that were meant to win progressive votes, her advisers said.
HOMEBUYER CREDITS, COMPANY PENALTIES
The proposals are larger or more detailed versions of price gouging, housing plans and tax cuts already introduced by Biden.
Harris’s plan will include “the first-ever federal ban on price gouging on food and groceries,” which her campaign says aims to stop big corporations from unfairly exploiting consumers while generating excessive corporate profits.
She will direct the Federal Trade Commission to impose “harsh penalties” on firms that break new limits on price gouging, campaign officials said.
She will also release a plan calling for 3 million new construction units, outline a series of tax incentives and other measures to encourage building homes for first-time homebuyers and offer a $25,000 credit for such buyers.
Harris also aims to expand rental assistance, ban rental price-fixing and stop Wall Street firms from buying homes in bulk. Harris will push to lower healthcare costs, cancel medical debt and tout how her administration negotiated down the prices of 10 top-selling prescription drugs used by Medicare by as much as 79%.
RELATED: Republican Party is Trump’s now. Critics wary his quest for power will go unchecked
She will also draw contrasts with Trump on tax policy and tariffs and maintain Biden’s promise not to raise taxes on people who make $400,000 or less a year, her campaign said. Trump slashed the corporate tax rate to 21% from 35% and implemented other tax breaks that are set to expire next year.
Trump has promised to make the tax cuts permanent and suggested new across-the-board tariffs on imports, an idea Harris rejects. Trump’s campaign on Wednesday tied Harris to Biden’s economic record. (Reuters)
Harris-Walz Democratic National Convention: the when, where and who
WASHINGTON – The Democratic National Committee will hold its convention next week to celebrate the nomination of Kamala Harris as the party’s presidential candidate in Chicago, starting Aug. 19.
The four-day event is expected to draw thousands of people to the city in a show of enthusiasm for Harris’ surprise ascent to the nomination after President Joe Biden dropped out of the race.
While it will be like a party inside the convention hall, the streets outside are expected to be heavy with protesters frustrated with the Democratic administration’s support of the way Israel is carrying out its war in Gaza.
Here’s what you need to know:
WHAT IS THE CONVENTION?
The two major U.S. political parties hold a convention each presidential election cycle to officially nominate their candidates and adopt a party platform. Democrats already officially nominated Harris last month in a virtual vote of delegates due to concerns about ballot access in states with early deadlines.
At the Republican convention last month in Milwaukee, Donald Trump was officially nominated and introduced his pick for vice president, JD Vance, a U.S. senator from Ohio.
WHEN AND WHERE IS THE DNC CONVENTION?
The convention will run Aug. 19-22 in Chicago’s United Center.
The prime-time events will be broadcast on all major networks; streaming services including Hulu, Paramount Plus, Peacock and Max; the DNC YouTube and X channels and various news websites.
WHO ARE THE SPEAKERS?
Biden will kick off the convention Monday night with a bittersweet keynote speech that will serve as a goodbye of sorts for a politician who just weeks ago was expected to come to Chicago to accept the renomination as his party’s presidential candidate.
Former presidential candidate Hillary Clinton and former Presidents Barack Obama and Bill Clinton will have marquee speaking slots as well.
RELATED: Could Kamala Harris beat Donald Trump in November’s presidential race?
Minnesota Governor Tim Walz, Harris’ running mate, will introduce himself to Americans on Wednesday night, and Harris will end the convention on Thursday with one of the biggest speeches of her political career.
WHAT ABOUT PROTESTS?
Thousands of pro-Palestinian protesters plan to gather during the convention, demanding that the U.S. end its aid to Israel amid the ongoing Middle East conflict.
The March on the DNC, a coalition of over 200 organizations from all over the country, plans to hold two demonstrations during the event. Those events are expected on Monday and Thursday. (Reuters)
