In this discussion, James Politi, the Washington Bureau Chief for the Financial Times, shares insights on Kamala Harris's policy platform as the election looms. They dive into her potential industrial and tax reforms, and how she could differ from Biden's approach. Politi highlights the challenges of housing affordability and the implications of current tax policies on different income groups. The conversation also touches on Harris's prospective cabinet and economic strategies, raising questions about her future impact on U.S. governance.
Kamala Harris's economic platform emphasizes modernizing priorities, particularly in artificial intelligence and advanced technology, reflecting a continuity with Biden’s policies.
Her proposed tax reforms focus on supporting low and middle-income households while raising taxes on higher income brackets and corporate entities for funding.
Deep dives
Kamalanomics and Policy Continuity
The discussion highlights the policy platform of Vice President Kamala Harris, particularly in relation to economic strategies and how they align with those of President Biden. Both leaders share a similar philosophical approach to industrial policy, with Harris expected to continue the existing measures enacted by the Biden administration. However, she appears to focus more on future industries such as artificial intelligence and advanced technology, potentially indicating a shift towards modernizing economic priorities. This continuity raises questions about the implications for the next administration while suggesting that Harris may not drastically alter the established policies.
Tax Policy Changes and Implications
Harris proposes adjustments to domestic tax structures, indicating plans to extend tax cuts for households earning under $400,000 while allowing increases for higher income brackets. She aims to raise the corporate tax from 21% to 28% and similarly increase the capital gains tax, though less aggressively than Biden’s original proposals. By seeking to reinstate generous child tax credits that had previously lifted many families out of poverty, her platform emphasizes support for lower and middle-income households. However, concerns arise regarding potential revenue changes and the distribution of the tax burden across different income levels.
Challenges in Housing and Affordability
Harris’s focus on affordable housing addresses the growing crisis affecting young households and first-time buyers in the U.S. She proposes tax credits to make home buying more accessible but recognizes that demand stimulation could exacerbate existing supply issues. While her initiatives include increasing support for builders focused on low-income communities, doubts remain about the effectiveness of these measures in creating significant long-term change in the housing market. The proposal reflects a broader understanding of the need for a balanced approach between stimulating demand and enhancing housing supply.
With the US election in a matter of weeks, today Soumaya Keynes is joined by the FT’s Washington bureau chief, James Politi. They discuss the Kamala Harris platform – from industrial policy to tax reform to housing – and what it might all cost. They also talk about how Kamala Harris might differ from Joe Biden, and which staff members might stay and which might go.
Soumaya Keynes writes a column each week for the Financial Times. You can find it here