The Harris-Walz Economic Plan: A full breakdown
The Harris Campaign releases their most detailed policy papers so far
Topic:
Politics
by MPeriod
Posted 2 weeks ago
The Harris-Walz economic plan, detailed in the "A New Way Forward for the Middle Class" document, outlines a broad strategy to create an "Opportunity Economy" aimed at strengthening the middle class through key policies that reduce costs and promote wealth creation for working families. Here’s a comprehensive breakdown of their plan:
Introduction
Harris and Walz frame their economic approach as one focused on lowering costs for families and creating economic opportunities, particularly for the middle class. They emphasize the belief that a strong middle class is foundational for a strong America. The plan also addresses the continuing impact of high prices and proposes tax cuts for over 100 million Americans. Central to their economic vision is creating pathways to homeownership, supporting small businesses, and fostering innovation in American industries.
Key Pillars of the Harris-Walz Plan:
1. Lowering Costs for Middle-Class Families
a. Cut Taxes for Working People: The plan proposes restoring the Expanded Child Tax Credit, which would provide up to $3,600 per child to middle-class families. This policy was originally passed through Vice President Harris' tie-breaking vote, which had been blocked from becoming permanent by opposition in Congress. Harris and Walz aim to make this tax cut permanent, and they also propose new tax credits like $6,000 in tax relief for families during the first year of a child’s life.
b. Lowering Health Care Costs: The Harris-Walz administration plans to build on the Affordable Care Act by expanding tax credits and making health care more affordable. They also aim to tackle prescription drug costs, proposing an extension of the $35 insulin cap and accelerating Medicare's drug price negotiations. The plan also includes actions to expand care for veterans and erase medical debt.
c. Lowering Prescription Drug Costs: Building on the Inflation Reduction Act, Harris and Walz plan to further reduce drug prices by extending the $35 insulin cap to all Americans and accelerating drug price negotiations under Medicare. They also aim to increase transparency and competition in the pharmaceutical industry, focusing on lowering out-of-pocket costs.
d. Lowering Energy Costs: Harris and Walz pledge to continue investments in clean energy initiated under the Inflation Reduction Act, which has already spurred over $265 billion in clean energy investments and created more than 330,000 jobs. Their plan would provide tax credits to households to make energy-efficient upgrades and support efforts to ensure the U.S. remains energy independent while lowering costs at the pump and home energy bills.
2. Building an Opportunity Economy
a. Housing Expansion: The administration plans to partner with the private sector to build 3 million additional homes to combat the housing shortage. They would provide historic down-payment assistance of up to $25,000 to help first-time homebuyers. This would address homeownership barriers, especially for middle-class families and communities historically shut out of the housing market, like Black and Latino families.
b. Small Business Support: Harris and Walz see small businesses as key drivers of economic growth and innovation. Their plan includes a significant expansion of the startup expense deduction from $5,000 to $50,000 to encourage entrepreneurship. They also aim to spur 25 million new business applications by reducing red tape and providing more capital access for startups.
c. Invest in American Innovation and Industry: The administration seeks to enhance America’s industrial strength by focusing on workers and innovation. They emphasize investments in advanced technologies, workforce development, and infrastructure that support American manufacturing. They also want to secure American leadership in future industries, like clean energy and advanced manufacturing.
d. Creating Security and Opportunity for Workers: Harris and Walz propose creating workforce programs that provide clear pathways to middle-class jobs without requiring a college degree. This would include investment in the care economy to create more caregiving jobs and support services for working families. The administration also pledges to protect Social Security and Medicare from proposed cuts by political opponents.
3. Ensuring Fiscal Responsibility
Independent economic analyses cited in the plan show that Harris and Walz's policies are expected to lead to stronger job growth and lower inflation compared to policies proposed by their political rivals. Studies from sources like Moody’s Analytics and Goldman Sachs indicate that a Harris-Walz administration would add millions of jobs and increase household disposable income. Their fiscal policy is projected to be more responsible, with a smaller budget deficit than under a Trump administration.
Key Impact Projections:
- GDP Growth: Under a Harris-Walz presidency, the economy is projected to grow by adding between 10,000 and 30,000 more jobs per month than under a Trump presidency. Additionally, independent analyses estimate that household disposable income will increase.
- Tax Cuts: The plan seeks to implement significant tax cuts for the middle class, targeting more than 100 million Americans while ensuring no tax increases for those earning less than $400,000 annually.
- Housing Crisis Solutions: Their housing plan focuses on building homes for first-time buyers, expanding rental affordability through the Low-Income Housing Tax Credit, and providing $25,000 in down-payment assistance to first-time buyers.
- Health and Energy: The Harris-Walz plan builds on existing policies to lower healthcare costs, expand energy independence, and invest in a cleaner and more resilient energy future.
Harris and Walz present a comprehensive plan designed to tackle the most pressing economic challenges faced by middle-class Americans today. By focusing on cutting costs for everyday necessities, promoting innovation, and supporting homeownership, they aim to revitalize the middle class and create long-term economic growth. Their plan contrasts sharply with proposals from their political opponents, particularly in areas like tax cuts for the wealthy, healthcare, and energy policy.
This plan positions Harris and Walz as economic reformers with a vision for expanding opportunities for all Americans, with a particular focus on lowering costs, supporting workers, and fostering innovation in key industries to ensure America’s leadership in the global economy.
