Harris Announces Expansion of Tax Benefits for Middle Class and Supply of 3 Million New Homes
U.S. Democratic presidential candidate Vice President Kamala Harris has unveiled a large-scale support plan for the middle class, including tax benefits, grocery prices, drug costs, and housing prices.
On the 16th (local time), Vice President Harris visited North Carolina and revealed her economic vision for the first 100 days in office. This is Vice President Harris's first policy pledge. Harris stated, "If I become president, I will focus on advancing the economic stability of the middle class," naming it the 'Economy of Opportunity,' and emphasized, "Above all, we must lower the cost of living for many American households."
She said, "Although supply chains have stabilized since the pandemic, prices are still too high," adding, "Most companies create quality jobs and operate according to the rules, but some do not, and action must be taken against them." She continued, "As president, I will crack down on these bad actors. I will ban grocery price gouging at the federal level," and stated, "If large corporations unfairly exploit consumers for excessive profits, new regulations will be imposed."
According to the pre-announced plan from Harris's camp, the Federal Trade Commission and state attorneys general will be granted authority to investigate and severely punish companies that violate these regulations. They will also crack down on unfair mergers and acquisitions that enable large food companies to significantly raise prices and hinder competition.
Harris's camp stated, "No one should go bankrupt just because they have experienced illness or injury," and announced that Vice President Harris plans to forgive medical debt for millions of Americans.
They also pledged to crack down on pharmaceutical companies that increase consumers' drug costs. The plan includes providing a $3,600 tax credit per child for middle-class families and a $6,000 newborn tax credit in the year a child is born.
There will be no tax increases for households earning less than $400,000 (approximately 540 million KRW) annually.
Additionally, Vice President Harris plans to address the severe housing shortage across the United States by ensuring the supply of 3 million new homes over four years. To achieve this, tax benefits will be provided to builders constructing homes for first-time homebuyers, and regulations such as permits that hinder housing construction will be improved. First-time homebuyers will receive $25,000 (approximately 34 million KRW) to use as a down payment, and $40 billion in funding will be raised to support housing supply at the local government level.
Measures will also be taken to prevent large corporate landlords from colluding to excessively raise monthly rents. Harris plans to push for the passage of legislation in Congress that would deny tax benefits related to home purchases to Wall Street investors, such as private equity firms, who hoard rental properties.
U.S. media outlets have evaluated that many of Vice President Harris's economic policies are extensions of those pursued by the Biden administration, but some policies have a more populist tone. The New York Times (NYT) assessed that, overall, Harris's plan is more of a restart of President Biden's economic policies rather than a completely new beginning. The Washington Post (WP) pointed out that regarding the ban on grocery price gouging and other measures, "Harris's plan represents a much stronger economic populism than Biden, who has already shifted the party's economic policies further to the left compared to previous Democratic presidents."
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