Middle, middle, middle class: Harris' pitch to the heartland
Sep 3, 2024
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In this insightful discussion, Dr. Emma Shortis, a doctor and expert in economic agendas, and Greg Jericho, Chief Economist at the Australia Institute, tackle the economic proposals of the Harris-Walz campaign. They delve into how these initiatives aim to empower the middle class, addressing inflation and price gouging to protect consumers. The duo also critiques past tax policies while exploring the potential impact of a wealth tax. They highlight the significance of the child tax credit and discuss the challenging political landscape affecting economic policy.
Harris' economic agenda focuses on uplifting the middle class through tax cuts and affordability initiatives to address cost of living concerns.
The proposed policies include a significant corporate tax increase and a wealth tax to ensure equitable contributions from the wealthy.
Deep dives
Democrats' Economic Platform Overview
The economic platform proposed by the Harris campaign is fundamentally centered on strengthening the middle class in America. Harris emphasizes tax cuts for middle-class families, initiatives aimed at reducing prescription drug prices, and efforts to make housing more affordable. The campaign is framed around alleviating the cost of living, a pressing issue for many Americans, with specific proposals aimed at lowering expenses across various sectors. These commitments signal a strategic focus on addressing economic concerns that resonate with a significant portion of the electorate.
Price Gouging and Inflation Control
One notable proposal includes a ban on price gouging, particularly for essential goods during national emergencies, which Harris plans to put into effect to protect consumers. This policy aims to prevent companies from taking unjust advantage of crises, like pandemics or natural disasters, to inflate prices excessively. By instituting new penalties for companies that exploit such situations, the plan seeks to create a more equitable market environment. This approach aligns with ongoing discussions about inflation in the U.S. and reflects common strategies already employed in multiple states.
Tax Reforms Focused on Corporations and Wealth
The Harris platform also outlines significant changes to tax policies, primarily targeting corporations and wealthy individuals. A key proposal involves raising the corporate tax rate back to 28% from the previous 21% established under former President Trump, aiming to ensure that corporations contribute fairly to government revenue. Additionally, Harris suggests implementing a wealth tax on unrealized gains for individuals with wealth exceeding $100 million, addressing a loophole that currently benefits the ultra-wealthy. These proposed reforms challenge existing narratives around tax rates and investments, suggesting that higher taxes on wealth and profits do not necessarily deter economic growth.
Housing Policies and Child Tax Credits
Harris' commitment to housing includes a proposal to generate three million new homes over four years, which is an ambitious goal compared to current building rates. This initiative aims to tackle the housing crisis by increasing supply and providing tax incentives for first-time homebuyers. Alongside housing, the campaign seeks to enhance the child tax credit, aiming for a significant increase to put more disposable income in the hands of families. These policies not only address immediate economic challenges but also demonstrate a broader commitment to societal welfare and family support, crucial themes for many voters.
Greg Jericho and Emma Shortis discuss the Harris-Walz economic agenda on this special Dollars & Sense x After America crossover episode.
Republicans have tried to pin the Vice-President as ‘Comrade Kamala’, but are her economic policies all that radical? On this special After America and Dollars & Sense crossover, Dr Emma Shortis and Dr Greg Jericho discuss Harris’ economic agenda.
Greg Jericho is Chief Economist at the Australia Institute and the Centre for Future Work and popular columnist of Grogonomics with Guardian Australia. Each week on Dollars & Sense, Greg dives into the latest economic figures to explain what they can tell us about what’s happening in the economy, how it will impact you and where things are headed.
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au.