7 Ways a Harris-Walz Win Could Affect the Economy — And Your Wallet
This election is gearing up to be quite a race. Candidates on both sides of the aisle are revealing their agenda, which includes their economic proposals.
Vice President Kamala Harris and Minnesota Governor Tim Walz are running on the Democratic ticket. Since Harris is a latecomer to the election, having only stepped in to fill President Joe Biden’s slot in July, she is only just starting to flush out her proposals. She and Walz align on many issues, and while Harris supports many of Biden’s policies, she also introduced some of her own.
We’ve taken a look at the Harris-Walz economic proposals and dug into what it could mean for Americans.
More Support in the Workforce
Both Harris and Walz support the workers of America, whether it’s an increase in minimum wage, mandatory paid leave, or backing the labor unions. Labor unions largely favor Walz for the moves he made as Minnesota’s governor.
With Walz in Harris’ corner, it’s likely the two would make supporting working families a priority.
Tax Breaks for Small Businesses
Small businesses are the cornerstone of America. According to the Small Business Association, there are more than 33 million in the US. Harris said she wants to increase that by 25 million new applications and provide a massive tax deduction.
Currently, the small business tax credit is $5,000. The VP wants to expand that to $50,000. The idea behind this significant increase is to help cover the costs of starting a new business, an average of $40,000. Her proposal would also allow these companies to wait until they start turning a profit to claim the tax credit, reducing their liabilities.
Increased Access to Healthcare
Walz is a proponent of lower healthcare premiums. He worked to expand benefits in his state. Where he differs from Harris is he didn’t stand steadfastly behind the Affordable Care Act (Obamacare), citing increased healthcare rates for rural workers.
Harris has expressed interest in expanding Medicaid or potentially, subsidized insurance. Lowering premiums and expanding affordable access would help put more money back in workers’ pockets.
Safeguarding Retirement Plans
Right now, we’re in the midst of a mass exodus from the workforce as Boomers retire. As they retire, they will be calling on their funds to get them through the golden years. The problem is many will be relying on Social Security, and the program is facing some hardships over the next decade.
Walz, as governor, supports Secure Choice, a Minnesota retirement program. A new law is slated to go into effect in 2025, mandating employers with five employees or more offer retirement plans or enroll in Secure Choice, an individual retirement fund through the state government.
Ban Price Gouging
A quick trip to the grocery store can be devastating on the wallet. Prices have increased 25% since January 2020 and Americans are feeling the pinch. Harris said she has a plan to target those price gouging and not “playing by the rules.”
Harris pointed out some food manufacturers are enjoying record profits while the general public suffers. She wants to encourage competition in order to bring those prices down. Economists agree that more competition could help reduce costs, but caution the issue is much more complex and that the Justice Department should monitor any proposed acquisitions or mergers, as well.
Capital Gains Taxes
During one of her rallies, Harris unveiled a bit more detail regarding her plans for capital gains taxes. Essentially, anyone making over $1 million annually will be subject to a 28% tax rate on long-term capital gains. That rate is currently 23.8%, so it would increase, but her proposed figure is significantly less than the 39.6% Biden was seeking.
The purpose of the tax, according to the vice president, would be to encourage investment, which would lead to economic growth, more jobs, and thus, a stronger economy.
A Controversial Energy Policy
Green energy is a very controversial and polarizing subject. There are those in favor and those against, with very little middle ground. The argument is that green energy will be unreliable and costly. Proponents of zero emissions, however, say the government can’t afford not to act.
A majority of surveyed economists agree the costs could be significantly more in the short term, but would outweigh damages caused by inaction. Regardless, look to see clean energy play a pivotal role should Harris and Walz win in November.
