(Reuters) -Sus vice-president Kamala Harris has announced a basket of economic proposals to reduce livelihood for Americans in the middle and lower class and the economy generally stimulating by using tax stimuli and other tax shifts.
Some of her ideas build on Aunfinished things in the economic agenda of President Joe Biden, but expand their reach and size.
This is what we know so far:
Industrial stimuli
On Wednesday, Harris has promised new tax credits to stimulate and invest more domestic production in sectors that “define the next century”, including biomanufacturing, space travel, artificial intelligence, quantum computing and blockchain, advanced nuclear energy and batteries.
She also said that she would offer tax stimuli for expanding “good union courses” in long -standing iron, steel, coal and other traditional industrial communities. Details about the size and scope of the stimuli and investments were not announced.
Harris announced new investments in US Basic Technology Research, via the National Science Foundation, the National Laboratories and other institutions of the Department of Energy.
She also announced plans to cut bureaucracy to speed up the construction of new infrastructure and industrial projects and to use the Defense Production Act and other tools to increase American capacity to process critical minerals and to depend on the dependence from China reduce.
Tax on the rich
Harris has repeated the promise of Biden not to levy taxes on households that earn less than $ 400,000 a year.
She has quietly endorsed the majority of the nearly $ 5 trillion of tax increases for a decade in the tax budget proposal of BIDEN 2025, which would increase the highest rate of income tax to 39.6% of 37%.
These include a new minimum load of 25% on people with fortunes of more than $ 100 million, including on non -realized capital wins. For those who earn more than $ 1 million annually, Harris proposed to increase the tax rate in the long term that were paid after selling assets such as shares up to 28% of 20%, an increase much smaller than 39.6% Full rate in the top tax presented by Biden.
Tax on companies
Harris has proposed to increase the rate of corporation tax to 28%, as a result of which the former president and the Republican rival Donald Trump partially reversed the 2017 tax legislation of Donald Trump, which has reduced the company’s tax rates to 21%of 35%. The step would yield $ 1 trillion for the federal government for more than ten years, estimate budget experts, but in business profits, says Wall Street.
Large American companies pay a much lower effective tax rate than their foreign competitors with an average of 16%, according to an analysis of Reuters. All changes in broad corporation tax should be assumed by the congress.
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Tax credit for children
Harris has held Biden’s proposal to permanently repair an increase in the child tax credit of one year a year to no less than $ 3,600 per child from $ 2,000, which drops to $ 1,000 after 2025. $ 6,000 bonus one -off credit for families with newborns.
Trump’s vice -presidential running buddy, JD Vance, has collected the annual child tax credit to $ 5,000, but the idea was not assumed as an official proposal for Trump policy.
Affordable housing
Harris has detailed plans to encourage new construction and to lower the costs for tenants and home buyers, largely due to tax stimuli. They include tax credits for builders of houses for first buyers and affordable rent units, together with a tax credit of $ 25,000 to help buyers for the first time for the next four years.
Harris also proposes an “innovation fund” of $ 40 billion to encourage local governments to build more affordable houses, so that a Biden budget proposal would double that competitive subsidies would make local authorities that show that they can get results.
American house prices have risen by 50% in the last five years and rental prices have risen 35%, according to real estate company Zillow, largely due to a housing shortage. Harris has set the goal of increasing American housing in the next four years by 3 million units.
Tax credit for small companies
Harris has also deviated from Biden’s economic plan by proposing the tax deduction to $ 50,000 for new start-up costs for small companies from $ 5,000 that are currently supporting entrepreneurs. The 33 million American small companies were responsible for 70% of the net new jobs created since 2019, according to data from Small Business Administration.
Childcare
“My plan is that no family, not a work family, can pay more than 7% of their family income in childcare,” Harris told the National Association of Black Journalists in September. American parents currently pay no less than 19.3% of the median family income per child for care, according to the figures from the Ministry of Labor.
The 7% figure reflects the Child Care and Development Block Grant, a program that has recommended Harris that currently supports around 1 million children in families with a low income.
The Harris campaign has not detailed how the childcare plan would work.
High supermarket prices
Harris has sworn to carry out the “very first federal ban on price executing on food and groceries” that aims to prevent large companies from exploiting consumers unfairly and generating excessive profit. Defining such excessive price increases is not clear, but some proposals in the US Senate show a potential path to determination.
(Reporting by Heather Timmons and David Lawder; Editing by Jamie Freed and Jonathan Oatis)