Harris proposes tax breaks to counter Trump’s economic attacks and lower costs

RALEIGH, N.C. — Vice President Kamala Harris is unveiling an extensive array of economic measures designed to provide new tax breaks and reduce living expenses for Americans. These initiatives aim to tackle voters’ predominant financial concerns, especially as Republican former President Donald Trump seeks to hold Harris accountable for economic challenges.

On Friday, Harris will visit North Carolina, a crucial battleground state, to present her proposals. These include a suggested federal ban on price gouging for groceries. Additionally, she plans to offer $25,000 in down payment assistance for eligible first-time homebuyers and provide tax incentives to encourage the construction of starter homes.

Harris emphasizes tax breaks targeted at families, alongside middle- and lower-income individuals. Her proposals include an expansion of the child tax credit, increasing it to $3,600 and allowing $6,000 for infants in their first year. Furthermore, she aims to broaden the earned income tax credit to reach lower-income workers without children, potentially lowering their effective tax load by around $1,500, as estimated by her campaign.

Efforts to reduce health insurance premiums through the Affordable Care Act are also part of Harris’ agenda.

Many of these proposed changes hinge on congressional approval, which remains uncertain in the present political landscape.

In her effort to counter Trump, who referred to her as “a radical California liberal who broke the economy” during a recent speech in Bedminster, New Jersey, Harris seeks to mitigate his criticisms. In his speech, he highlighted grocery items to emphasize the rising cost of food.

While year-over-year inflation has dipped to its lowest rate in over three years, food prices remain approximately 21% higher than three years ago. A recent report from the Labor Department indicated that much of July’s inflation surge stemmed from increased rental and housing costs. However, real-time data suggests that these costs are beginning to stabilize, hinting at a potential slowdown in the housing market’s inflationary pressures.

The grocery pricing proposal Harris is advocating would task the Federal Trade Commission with penalizing “big corporations” that engage in price inflations. She specifically points to insufficient competition in the meat-packing sector as a key factor in escalating meat prices.

Current polling indicates that many Americans are more inclined to trust Trump over Harris regarding economic management. Approximately 45% believe Trump is better equipped to handle economic matters, contrasted with 38% for Harris. The latest Associated Press-NORC Center for Public Affairs Research survey shows that about 10% of respondents distrust both figures in economic governance.

Harris has experienced a surge of enthusiasm following the Democrats’ recent campaign reboot and is now aggressively campaigning in battleground states, expanding the slate of competitive races according to political strategists. In North Carolina, Democrats are cautiously capitalizing on renewed interest in a state that has not supported a Democratic presidential candidate since Barack Obama in 2008.

This year, North Carolina has seen increased attention from both Biden and Harris. Following Biden’s difficult debate performance against Trump, Raleigh became the venue for his rally aimed at mobilizing Democratic voters. Harris also stopped in North Carolina, visiting Greensboro and Fayetteville, in the lead-up to Biden’s announcement to withdraw from the race.

Political analysts like North Carolina State University professor Steven Greene assert that Kamala Harris has transformed the political dynamic in North Carolina considerably. “We went from a situation where Joe Biden was almost surely going down in defeat here, whereas Kamala Harris has a very real chance of winning,” Greene noted.

Dan Kanninen, the battleground states director for Harris’s campaign, remarked that “North Carolina is as likely as any of those states to be the tipping point state, so we’ve invested in it heavily since the beginning.”

Harris is tasked with defining her economic policies while still acknowledging Biden administration achievements. When asked if Harris would distance herself from Biden’s economic record, the president affirmed, “She’s not going to,” reiterating their collaborative efforts.

The two leaders recently participated in their first joint speaking event since Biden dropped out, during which they highlighted their success in negotiating reduced prescription drug prices for Medicare recipients. This achievement stems from a provision in the Inflation Reduction Act, a broad law focused primarily on climate and healthcare initiatives.

At the event, Harris praised Biden, emphasizing his significant contributions to affordable healthcare. Biden countered critiques of his administration and characterized Trump’s opposition to their policies as detrimental to progress made in reducing costs.

Biden underscored the importance of preventing price gouging, stating, “I have no problem with companies making money, but not with price gouging,” illustrating the administration’s commitment to economic fairness.

Source: Associated Press