What you need to know about Kamala Harris’ ‘opportunity economy’

“That’s why as President, Kamala Harris will create an Opportunity Economy where everyone has a chance to compete and a chance to succeed — whether they live in a rural area, small town, or big city.”

Harris first introduced the concept in North Carolina last month, reiterated it in her convention acceptance speech, and mentioned it again during her first presidential debate with former President Donald Trump on Tuesday night.

“I believe in the ambition, the aspirations, the dreams of the American people,” Harris said at the debate, “and that is why I imagine and have actually a plan to build what I call an ‘Opportunity Economy.'”

But just what exactly is Harris looking to do when she says she’s going to build up the middle class through her “Opportunity Economy” agenda?

A mixture of tax cuts for parents and small businesses

Like Trump, Harris is calling for tax cuts as well, though hers are primarily focused on families and small businesses.

“We know that young families need support to raise their children, and I intend on extending a tax cut for those families of $6,000, which is the largest child tax credit that we have given in a long time,” Harris said on Tuesday night.

She said this would be so that young families could afford to buy a crib, a car seat, and clothes for their young children.

The Biden administration made a similar expansion to the child tax credit in 2021 under the American Rescue Plan.

Instead of the usual $2,000 tax credit, parents received a tax credit of $3,600 per child under the age of six and $3,000 for older children.

That is in addition to the tax relief she hopes to give to small businesses.

“I love our small businesses. My plan is to give a $50,000 tax deduction to start-up small businesses, knowing they are part of the backbone of America’s economy,” Harris said during the debate.

That is a ten-fold increase of the current startup expense tax deduction new businesses can claim.

During the debate, Harris accused Trump of only wanting to offer tax breaks to the richest people, while Trump countered by saying Harris lacked a detailed plan.

Despite their disagreements, both candidates agree on a proposal to eliminate federal taxes on tips, while Harris has said she would want to set capital gains and corporate taxes at 28% and has pledged to prevent tax hikes on people making less than $400,000.

A ‘path to the middle class’ via homeownership

During the debate, Harris raised the issue of housing supply and affordability, later using the topic to draw a wedge between her upbringing and Trump’s background.

“I grew up a middle-class kid raised by a hard-working mother who worked and saved and was able to buy our first home when I was a teenager,” Harris said.

She continued: “The values I bring to the importance of homeownership — knowing not everybody got handed $400 million on a silver platter and then filed for bankruptcy six times — is a value that I bring to my work.”

Harris said she hopes to work with the private sector and homebuilders to construct 3 million more homes by the end of her first term as part of an effort to end the nation’s housing supply crisis.

Her campaign also says Harris would cut red tape to speed up housebuilding, penalize firms that hoard available homes, and sign legislation to outlaw price fixing by corporate landlords.

In addition, Harris said during the debate that her administration would seek to provide financial support to first-time homebuyers.

“I have a plan that is about allowing people to be able to pursue what has been fleeting in terms of the American dream by offering help with $25,000 down payment assistance for first-time homebuyers,’ Harris said on Tuesday.

Going after price-gouging

Harris has repeatedly pledged to combat anti-competitive practices, specifically targeting price-gouging.

Price gouging, which she did not mention in the debates, occurs when companies significantly raise prices above production and investment costs, often due to a lack of competition.

In the debate, however, she said her administration would focus on lowering the prices of groceries and medicine.

She highlighted the Biden administration’s success in securing a $35-per-month cap for seniors with diabetes on their insulin spending, as well as a cap on the cost of prescription medication for seniors at $2,000 a year.

The Harris campaign says her administration would want to go “toe to toe with Big Pharma” to negotiate lower prescription drug prices.

What do experts make of the plan?

Business Insider’s Alice Tecotzky noted that Harris’ policy page is sparse on many specifics, though it does reference venture capital multiple times, suggesting an effort to court the business tech vote.

Last month, a group of powerful venture capitalists came together to pledge their support, and, more recently, dozens of prominent Wall Street and tech executives signed a letter endorsing Harris.

Goldman Sachs has predicted that Harris’ plans would likely boost the US economy’s growth, whereas economic output would likely take a hit under Trump if he wins in November.

And, according to Moody’s Analytics, an economic research company, a Harris win could lead to economic growth, with inflation moderating, while a Trump sweep could lead to higher inflation and weaker economic growth.

But despite these predictions, voters aren’t necessarily convinced.

In a recent nationwide New York Times/Siena College poll, which surveyed 1,695 registered voters from September 3 to 6, 56% responded that they trusted Trump to do a better job on the economy than Harris.