6 Ways Kamala Harris’ Presidency Could Transform Finances for Lower-Income Americans
As the presidential election draws near, the spotlight often shines on the middle class, with incomes ranging from $50,000 to $150,000 annually. However, it’s crucial to consider how each candidate’s economic policies could impact lower-income Americans. Vice President Kamala Harris, the Democratic nominee, has proposed several policies aimed at enhancing economic equity for lower-income individuals and families.
So, how could a Harris presidency affect lower-income Americans’ finances? Let’s explore six key ways her presidency could bring significant changes.
1. A New Approach to Wealth Tax
Kamala Harris has outlined an economic plan she calls the “opportunity economy,” which builds on the Biden administration’s policies. Her plan includes increasing the corporate tax rate from 21% to 28%, reversing a Trump-era cut. Crucially, Harris has promised that those earning under $400,000 annually will not see any new tax increases.
Key Points:
- Wealth Tax: Harris’ proposal resembles a wealth tax aimed at redistributing resources more fairly. By increasing corporate taxes, the plan seeks to enhance economic equality.
- Impact on Lower-Income Americans: This policy could lead to greater investments in social programs that benefit lower-income families.
For a detailed comparison, check out our analysis of Trump’s and Harris’ economic policies.
2. Housing and Rent Relief Initiatives
One of Harris’ standout proposals is her housing and rent relief plan. As a senator, she championed the 2019 Rent Relief Act, providing a refundable tax credit for low-income families struggling with rent.
Current Proposals Include:
- “Build the American Dream” Agenda: Harris plans to construct 3 million new housing units over four years. This could address the severe shortage of affordable housing.
- Price-Fixing Crackdown: The plan includes measures to prevent landlords from charging excessively high rents.
- Expanded Low-Income Housing Tax Credit: This expansion aims to make homeownership more accessible to lower-income families.
These policies could make a significant difference in the financial stability of lower-income households by reducing housing costs.
3. Increasing the Federal Minimum Wage
Harris has consistently advocated for raising the federal minimum wage. She has previously supported a $15 per hour minimum wage.
Potential Benefits:
- Poverty Reduction: According to a Congressional Budget Office study, a $15 minimum wage could lift many Americans out of poverty.
- Income Boost: Higher wages would directly increase the earnings of millions of lower-income workers.
To understand the potential impact of a higher minimum wage, read our exploration of wage increases and poverty.
4. Closing the Racial Wealth Gap
The Biden-Harris administration has emphasised closing the racial wealth gap. Harris has been involved in initiatives aimed at building Black wealth and reducing disparities.
Past and Proposed Initiatives:
- Livable Incomes for Families Today Act: This proposed act would have provided up to $6,000 annually in tax credits for low-income and middle-class families.
- Future Plans: Harris is likely to push for expanded child tax credits, increased Affordable Care Act subsidies, and down payment assistance for first-time homebuyers.
These measures could address long-standing racial economic disparities and improve financial stability for many lower-income families.
5. Increased Federal Spending on Social Programs
Harris has a track record of supporting increased federal spending on social programs. This could potentially provide more direct support to lower-income households.
Expected Focus Areas:
- Medical Benefits: Expanding healthcare coverage and reducing costs for low-income families.
- Social Support: More funding for programs that directly benefit lower-income Americans, improving overall financial stability.
For insights into the benefits of increased social spending, visit our review of federal spending impacts.
6. Targeted Expansion of Support Services
Harris’ presidency could see a targeted expansion of support services for lower-income families. This might include enhanced medical benefits and housing support.
Potential Impact:
- Expanded Support: More comprehensive support could strengthen financial security for lower-income families.
- Legislative Challenges: The effectiveness of these policies will depend on Congressional support and the economic conditions during Harris’ term.
For a look at how support services could change, see our analysis of proposed support expansions.
Conclusion: The Potential Financial Impact of a Harris Presidency
A Kamala Harris presidency could bring significant changes to the financial landscape for lower-income Americans. From increasing the federal minimum wage and expanding housing relief to addressing the racial wealth gap and increasing federal spending on social programs, Harris’ policies aim to enhance economic equity and stability.
While these proposed changes hold promise, their implementation will depend on various factors, including legislative support and economic conditions. As we approach the election, it’s crucial to understand how these policies could shape the future for lower-income Americans.
