Kamala Harris promises tax breaks and investments for manufacturers

US Vice President Kamala Harris announced plans to support domestic producers and invest in sectors that will shape the future, as part of her economic strategy to strengthen the American middle class.

Speaking at the Economic Club of Pittsburgh, Pennsylvania, a key battleground state ahead of the upcoming Nov. 5 presidential election, Harris unveiled her proposal to provide tax breaks to U.S. manufacturers to modernize or build factories and increase the number of “good union jobs.” She also announced a doubling of the number of registered apprenticeships in her first term.

Harris has engaged in new investments in industries such as biomanufacturing, aerospace, artificial intelligence and clean energy.

While her nearly 40-minute speech did not specify how these initiatives would be implemented, she compared her background as a single mother to that of Donald Trump, the wealthy son of a New York real estate developer. “Building a strong middle class will be the most important goal of my presidency,” Harris said, portraying the election as a choice between her vision and that of her Republican opponent.

With both candidates prioritizing the economy in their campaigns, recent polls indicate that economic issues are top of mind for voters. According to Pew Research, the gap between rich and poor has widened in recent decades, with the percentage of American households considered middle class falling from about 62% in 1970 to 51% in 2023.

Harris criticized Trump for being “interested only in improving the lives of himself and people like him, the richest of Americans.”

She expressed her commitment to working with the private sector and entrepreneurs to strengthen the middle class, describing herself as a “capitalist” who believes in a “free and fair market.” Instead of adhering strictly to ideology, she characterized her policies as pragmatic.

Recent polls show Harris has narrowed Trump’s lead on economic issues, with a Reuters/Ipsos poll showing Trump leading by just 2 percentage points, down from an 11-point lead in late July. Trump responded during his economic plan speech in North Carolina by suggesting that Harris, as vice president, should take action to improve the Biden administration’s economic performance. “Families are suffering right now. So if she has a plan, she should stop bragging and do it,” he said.

While Trump has proposed broad tariffs on foreign goods – an idea supported by a slim majority of voters – Harris is focused on providing incentives for companies to continue operating in the US. The Biden administration has also stressed the importance of revitalizing U.S. manufacturing, particularly in sectors such as semiconductors, and restoring outsourced jobs.

The Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act – all enacted in 2021 and 2022 – provide grants and tax incentives to encourage companies to invest in economically disadvantaged regions.