Tax cuts, housing incentives, price caps more

Vice President Kamala Harris on Friday delivered an economic policy aimed at appealing to middle-class voters with a focus on reducing the cost of food, housing, health care and child care.

In a speech in Raleigh, North Carolina, the Democratic presidential candidate sketched what he described as an “opportunity economy,” with basic financial security.

His plan would impose a federal cap on grocery prices, create a new $6,000 child tax credit for families with infants and give first-time home buyers $25,000 in down payment assistance, among several other proposals.

Harris drew a stark contrast to the proposals put forward by her rival, former President Donald Trump.

He blasted the Republican nominee’s support for sweeping tariffs on imported goods as a “Trump tax,” while accusing him of seeking tax cuts on billionaires and corporations.

“I think if you want to know who cares, find out who they’re up against,” Harris said.

While still light on specific details, his plan has drawn fierce criticism from Republicans and economic analysts who warn that it will come after the government’s price tag.

“Having the government set prices is a huge mistake,” Kevin Hassett, Trump’s top White House economic adviser, said during a press call on Friday.

The nonprofit Committee for a Responsible Federal Budget estimates that the policies in Harris’ economic plan will increase the deficit by $1.7 trillion over the next 10 years.

Friday’s address was Harris’ first policy speech since he took over from President Joe Biden after he withdrew from the race last month.

With less than 90 days to go until Election Day, Harris sought to take credit for the economic achievements of the Biden administration, while trying to flip the script on key issues where his predecessor scored poorly.

Here’s what his economic plan is, according to his campaign.

In an effort to address skyrocketing grocery prices, Harris will work with Congress to enact the first federal ban on “corporate pricing” on food and groceries.

That would include setting “clear rules of the road” so that companies “cannot unfairly exploit consumers for enormous corporate profits” on staples, according to the fact sheet.

To investigate and punish alleged violators, Harris will empower the Federal Trade Commission and state attorneys general.

The Harris administration will also take an aggressive regulatory approach to proposed mergers and consolidations among the largest food producers.

Harris’ plan would help rent money by barring data companies from rent rates, and prevent Wall Street investors from buying homes in bulk to resell them at a premium.

Harris will also call for the U.S. to build 3 million new housing units over the next four years. To make it easier, he would call for new tax incentives for builders who build “starter homes.”

Any changes to the tax code require congressional approval, and depend heavily on which party controls the House and Senate.

As the supply of entry-level housing increases, Harris’ plan would “give working families who have paid their rent on time for two years and purchased their first home up to $25,000 in down payment assistance, with lower support for first-generation homeowners,” according to the fact sheet.

Harris will seek to expand the Biden administration’s $35 price cap on insulin for Medicare recipients to cover insulin for all Americans, not just the elderly.

As with his cost-cutting plans for the food industry, Harris’ health care policy hinges on stricter regulations and strict antitrust enforcement.

The plan calls for “removal of pharmaceutical companies that stifle competition and abusive practices by pharmaceutical intermediaries,” according to the Harris campaign.

Reinstating the expanded child tax credit that was first introduced during the Covid pandemic is a long-standing goal of the Biden administration, and one that Harris will implement if he is elected president.

He would also go further, and propose tax relief of up to $6,000 for families with babies.

The Harris campaign called this a “year when many family expenses are at their highest—with cribs, diapers, car seats and more.” It also notes that many parents without access to paid leave are forced to choose between spending time with their babies and working enough hours to make ends meet.

After just three weeks on the campaign trail, Harris has eliminated the polling advantage held by Trump over Biden.

But the vice president largely ignored policy specifics, choosing to contrast Trump.

With his Tar Heel State speech, Harris began to articulate his vision for an economy that continues to advance — and in some ways pivots — the economic record of the Biden administration.

On Thursday, Harris and Biden appeared together in Maryland to sign an agreement with pharmaceutical companies to reduce the cost of the 10 most expensive prescription drugs in Medicare.

The landmark negotiations — enabled through Biden’s central spending legislation, the Inflation Reduction Act — will result in about $6 billion in net savings for Medicare when it takes effect in 2026, according to the administration.

The vice president’s speech came just two days after Trump gave an economy-focused speech in North Carolina.

Speaking in Asheville, Trump launched a personal attack on Harris as he blamed him for the high consumer prices that Biden took to the presidency to reverse.

Recent polls show states that Trump won in the 2016 and 2020 presidential elections are now within reach for Harris in 2024.

A new round of battleground state polls released Wednesday by the Cook Political Report showed Harris leading Trump in North Carolina by 1 percentage point, 48 – 47, still within the survey’s margin of error.