Kamala Harris pledges tax breaks, investments to strengthen US manufacturing, middle class

US Vice President Kamala Harris, the Democratic presidential nominee, outlined her economic vision on Wednesday, promising tax credits for domestic manufacturers and significant investments in emerging industries.

Speaking at the Economic Club of Pittsburgh, Harris emphasised her commitment to revitalising the US middle class by boosting domestic production and creating "good union jobs" in critical sectors.

The vice president highlighted her plan to offer tax credits to manufacturers for retooling or rebuilding factories, with a particular focus on expanding union jobs.

She also committed to doubling the number of registered apprenticeships over her first term.

Additionally, Harris promised new investments in cutting-edge industries such as biomanufacturing, artificial intelligence, aerospace, and clean energy, positioning them as key drivers of the future economy.

Although she did not provide specifics on the implementation of these policies, Harris emphasized that her proposals would support long-term economic growth while distinguishing her platform from her Republican opponent, former President Donald Trump.

She framed the upcoming election as a choice between two contrasting visions for the American economy, emphasizing her upbringing by a single mother as a point of difference from Trump’s wealth and background.

“I have pledged that building a strong middle class will be the defining goal of my presidency,” Harris stated, positioning her plans as pragmatic and business-friendly, while expressing her belief in free and fair markets.

Trump, speaking in North Carolina on the same day, criticized Harris for failing to improve the economic record of the Biden administration despite serving as vice president.

He also promoted his economic platform, which includes across-the-board tariffs on foreign-made goods, contrasting his approach with Harris' focus on domestic incentives.

As the election nears, both candidates are vying to address voters' primary concern: the economy.

A recent Reuters/Ipsos poll shows Trump with only a slight advantage over Harris on economic issues, a significant decrease from a wider lead earlier in the summer.

Bowman said Trump's advantage flows from a perception the economy did well during his 2017-2021 administration, and from his success convincing voters US economic problems stemmed from underhanded economic competition from other countries, notably China.

The poll found one in three Democrats said they were more likely to vote for a candidate backing higher tariffs and steep levies on Chinese goods, compared with two-thirds who said they were less likely to do so.

Independent voters mirrored the wider electorate.

Some 56% of registered voters in the Sept. 11-12 poll said they were more likely to support a candidate backing a new 10% tariff, or tax, on all imports, as well as a 60% tariff on imports from China. By comparison, 41% said they were less likely to support a candidate attached to that proposal.

Harris' economic proposals also include raising the corporate tax rate to 28%, reversing some of Trump's 2017 tax cuts, and targeting a 25% minimum tax on individuals with fortunes exceeding $100 million.

She reiterated President Joe Biden’s promise not to raise taxes on households earning under $400,000 annually. Harris also endorsed expanding the Child Tax Credit to its COVID-era level of up to $3,600 per child and proposed a one-time $6,000 credit for families with newborns.

To address the housing crisis, Harris unveiled plans to increase affordable housing construction by 3 million units over the next four years.

She proposed tax credits for developers building homes for first-time buyers and affordable rentals, along with a $25,000 credit to help first-time buyers with down payments.

Additionally, she promised to double Biden’s $40 billion "innovation fund" to encourage local governments to increase affordable housing.

Finally, Harris pledged to enact the first-ever federal ban on food price gouging, seeking to protect consumers from excessive profits by large corporations during times of inflation.

While specifics remain unclear, this marks another step in her broader effort to reduce living costs for middle- and lower-income Americans.

As the election draws closer, Harris is making her economic agenda central to her campaign, aiming to boost American manufacturing, protect families, and support small businesses.