Kamala Harris’ agenda doubles down on debt forgiveness and tax credits

With Vice President Kamala Harris taking the reins from Biden as the Democrats' presidential nominee, a whole new economic agenda could be on the cards.

Harris has a long track record of voicing support for more radical reforms than Biden.

As a senator, she proposed the LIFT the Middle Class Act, which would have provided an annual tax credit of up to $3,000 per person for lower- and middle-income workers at the cost of around $3 trillion over a decade.

Now, as she gears up to run for president, Harris has again made middle-class families the heart of her campaign. In light of this, her election rhetoric and agenda have shifted to the left.

In Wisconsin last month, she said improving the lot of the middle class and bringing about a “care economy” would be “a defining goal of my presidency.”

At the same time, she contrasted her position with that of Republican presidential candidate Donald Trump, whom she argued “wants to take your country backward.”

In May, she told prospective voters in Detroit: “I believe every person in our country must have access to the opportunity to compete, to succeed, and to thrive; the ability to achieve what I call financial freedom, which means having enough not just to get by but to get ahead.”

Harris's agenda

When it comes down to specifics, the nationwide Economic Opportunity Tour Harris launched alongside Biden in April indicates where her focus will be.

Among the issues she highlighted were student loan forgiveness, medical debt forgiveness, increasing access to capital for small businesses, and lowering child care costs.

Harris touched on several of these in a speech she gave to the American Federation of Teachers last month, in which she said: “We see a future with affordable health care, affordable child care, and paid leave, not for some but for all.”

“We see a future where every student has the support and the resources they need to thrive, and a future where no teacher has to struggle with the burden of student loan debt.”

The Biden-Harris administration has already made student loan forgiveness a key plank of its policy agenda.

So far, it has canceled more than $167 billion in federal student loans, as Creditnews reported in May, when the program was expanded to cover another 160,000 borrowers.

Biden initially put forward a $400 billion bailout that would erase up to $20,000 in federal debt for roughly 40 million borrowers.

The Supreme Court struck this down in June, but given its importance for voters, Harris is likely to attempt to keep the issue high on her list of priorities should she win the election.

Beyond this, commentators have speculated Harris may attempt to push through tax credits similar to those in the proposed LIFT Act. However, some experts have also noted candidates often back away from eye-catching proposals.

"It would be unusual for her to move further left on tax or other policy items once she is the nominee," Jon Traub, tax policy group leader at Deloitte Tax LLP's Washington National Tax office, told Yahoo Finance.

"Normally we see candidates move toward the center once they secure their party’s nomination."

Former chair of the Federal Reserve Janet Yellen told journalists in a speech this week that Harris embraces the values of the incumbent administration, suggesting she will likely continue on the policy trajectory Biden has set.

“I feel that the core values that have been reflected in the policies of this administration are ones that Vice President Harris deeply embraces,” she said.

“She’s been focused on creating good jobs, lowering costs for Americans in crucial areas like child care and healthcare, and training workers in industries of the future.”