Harris vs Trump: What the candidates' economic plans mean for the US

President Joe Biden announced over the weekend that he would withdraw from the race for re-election in the November 5 elections. As of today, the nearly certain favorite to represent the Democratic Party is the current Vice President of the USA, and previously California Attorney General and California Senator, Kamala Harris.

The chances of Harris participating in the election are almost certain after recent polls gave her a two-percentage-point lead over Donald Trump. Kamala Harris on Monday became the unofficial candidate of the Democrats for the head of state and will officially become the candidate on August 7 at the earliest, as that's when the party's convention will take place. However, there is no time to lose, so she has promptly started her election campaign.

Kamala Harris's first stop was the state of Wisconsin. The unofficial Democratic candidate was warmly received at a campaign rally on July 23. Differences between her economic program and Donald Trump's plans were immediately noticeable.

"We believe in a future where every senior can retire with dignity. Building up the middle class will be a defining goal of my presidency. When our middle class is strong, American is strong," she added.

American media strongly predict that former prosecutor Harris will face Trump, who has been legally convicted of falsifying financial records. Since economic issues are the main points of the Republican campaign, they naturally inquired about what the current Vice President Joe Biden's deputy might propose.

The main topic is taxes because, in 2025, tax breaks introduced during Donald Trump's first term will expire. Trump intends to extend and deepen them.

Bloomberg points out that Joe Biden advocated keeping tax cuts for people earning less than $400,000 a year, thus including those considered middle class. The current president also proposed to roll back cuts for companies and introduce new tax burdens for those with assets exceeding $100 million.

The agency also recalls that in the 2020 election campaign, Biden proposed that the corporate tax be increased from 21% to 28%, whereas Harris was even stricter, calling for an increase to 35%. Trump, on the other hand, wanted to lower it to 15%.

It should be noted that the details of Kamala Harris's current economic program are not yet known. However, American media predominantly expect that she will follow the path set by Joe Biden. If any change is anticipated, it is a tightening of the course against the wealthiest Americans and big business.

"Kamala Harris is an excellent lawyer, but she is not an economist. She has no personal experience in the world of business or macroeconomics, so her economic program will undoubtedly take shape. Her campaign team and economic advisors will undoubtedly play a significant role," says Prof. Stanisław Flejterski, a lecturer at WSB Merito University in Szczecin, specializing in, among other things, international finance, in an interview with money.pl.

According to the economist, one should not expect a revolution in economic policy compared to the last few years when Joe Biden took over power in the USA.

"Kamala Harris's economic program will be forged during the campaign, talks, and debates. I think it will continue Joe Biden's policy, perhaps with a slight shift towards center-left, meaning a greater emphasis on social issues," says Prof. Flejterski.

Mark Zandi, chief economist at Moody's Analytics, shares a similar view. "I think she will follow the Biden economic script closely," he said in an interview with "USA Today." The article pointed out that the Democrat will position herself as a "candidate for continuity and stability."

As for social issues, Harris advocates expanding Medicare universal health insurance to all Americans. The costs could be covered by new tax burdens. Trump, on the other hand, wants to cut the program.

"Greater hopes in Kamala Harris are placed rather among poorer Americans than the wealthiest. However, I wouldn't worry too much about the fate of American multi-billionaires. They'll manage," comments Prof. Flejterski.

In this context, Bloomberg recalls that the Vice President "on financial markets proposed taxing stock transactions at 0.2%, bond trading at 0.1%, and derivative transactions at 0.002%."

Kamala Harris is also opposed to Donald Trump's plans to introduce 10% tariffs on all imported goods, except Chinese ones, which the Republican would like to subject to several times higher fees.

"The New York Times" recalls that last week, Harris said that such a policy would increase the prices of gasoline, groceries, and clothing in the USA. "His tariff wars had hurt soybean farmers in Iowa, who faced foreign retaliation," she stated. She herself advocated for stimulating exports.

Donald Trump wants to address the American deficit with tariffs. Increased oil and natural gas extraction would also serve this purpose, something the Democrats will certainly not agree to.

Bloomberg recently wrote that Kamala Harris is known for her critical stance towards oil companies. Her position is much more decisive on this matter than President Joe Biden's.

In the past, as California Attorney General, Harris took several actions against oil giants, known as "Big Oil," including filing lawsuits against pipeline companies for oil spills. She also conducted investigations into Exxon Mobil Corp., accusing the company of misleading public opinion on climate change.

In 2019, Harris publicly called for a ban on hydraulic fracturing, a practice used in the oil industry to extract oil and gas from dense rock formations (shale gas extraction). As Bloomberg noted, Biden never supported this move, but Harris was particularly critical of the development of offshore oil extraction.

Harris sought to limit new drilling off the coast of California and, as the state's Attorney General, took the matter to court, challenging federal permits issued for fracking in Pacific waters.