Kamala Harris entered the race against Donald Trump with one big disadvantage: Voters trust him more on economic issues. Now she is putting forward an economic plan aimed at narrowing the gap.
Harris is promising a "focus on manufacturing and middle-class opportunities," said The Wall Street Journal . The centerpiece: A package of tax credits, totaling $100 million over 10 years, with the intent of "revitalizing factory towns and retooling existing factories" as well as raising wages and encouraging "union partnerships." That's a departure from "traditional free-market views," said the Journal, in favor of a government-led " industrial policy " to compete with China.
Factories aren't the only focus. Harris has a goal of "25 million new small business applications in the first two years" of her White House term, said Forbes . Start-up small businesses currently get an initial $5,000 tax credit — Harris' plan would increase that to $50,000. Tax credits are at the heart of many Harris economic proposals: She is also seeking to expand credits for developers who build affordable housing and to restore the $3,600-a-year pandemic-era child tax credit for parents of young children.
'Practical solutions to problems'
Polls show voters are concerned that Harris is "too liberal," said Politico . The candidate says she is "pragmatic" on economic issues. "I believe we shouldn't be constrained by ideology, and instead, should seek practical solutions to problems," she said in a Pittsburgh campaign speech on the economy. To that end, she also promised to end degree requirements for some federal jobs and reform permitting processes to make it easier for developers to build. But the details of how she'd implement those promises are "still light on specifics," Politico said.
To a great degree, Harris and Trump "have many of the same stated goals for the economy," said The New York Times . Both want to slash regulations and middle class taxes, as well as encourage domestic manufacturing. It's their methods that "diverge sharply." Trump would use the stick of tariffs and import bans to achieve his goals, while Harris would emphasize the carrot of tax breaks. And with moderate stances on issues like capital-gains taxes and cryptocurrency , Harris is trying to "signal that she would be a responsible, pro-growth steward of the economy," said the Times.
How to fix a 'mixed bag' economy?
If this plan is so good, "why hasn't the Biden-Harris administration been following it for the past four years?" Nicole Russell said at USA Today . The economy under that administration is a "mixed bag" — stocks are high and unemployment low, but "tens of millions of Americans say they're struggling" to pay their bills. Harris' economic proposals are "like fixing a flat to plug holes in an economy that desperately needs major repairs," Russell said. She has had four years to make the fixes , but "she hasn't done it."
Trump's advantage over Harris on the economy "has dropped dramatically in recent weeks," said The Washington Post . Early polls showed him with a double-digit lead on the topic — that has now dropped to a six-point edge. "Voters are beginning to give [Harris] the benefit of the doubt," said Frank Luntz, a longtime GOP pollster, "and that's really significant."
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