Harris promises business leaders ‘pragmatic’ economic policy

WASHINGTON — Kamala Harris, who has promised to take tough action against companies that exploit consumers if elected president, moved Wednesday to prove she is a capitalist whose policies would benefit companies that play by the rules.

Harris told Pittsburgh business leaders she believes most companies are trying to do the right thing by their employees and customers. The Democratic candidate, who has spent her entire career in government and wants to increase taxes on corporations, said she will actively seek to improve the relationship between her administration and the business community.

“I have always been and always will be a strong supporter of workers and unions,” Harris said to applause. “I also believe that we need to engage those who create the majority of jobs in America. Listen, I am a capitalist. I believe in free and fair markets. I believe in consistent and transparent rules of the road to create a stable business environment.”

Harris’ first major economic proposal for the 2024 election was a promise to call in government lawyers to investigate companies suspected of overcharging for food and groceries and to direct them to investigate potential mergers between major food companies.

She also has proposed lowering housing costs by preventing Wall Street investors from buying homes in bulk, which Democrats say eats up inventory and raises costs for American families. Harris says she will impose a $35-a-month cap on insulin and cap prescription drug costs at $2,000 a year.

Republican presidential candidate Donald Trump has said Harris is a “Marxist” — she says she’s a capitalist — and has nicknamed her “Comrade Kamala” for her campaign plans, which include a proposed federal ban on price gouging in the food and grocery industries as a way to mitigate inflation. It’s one of the few proposals Harris has put forward that isn’t a continuation or expansion of Biden administration priorities.

Harris also proposed tax incentives to encourage developers to build properties that are targeted at first-time homebuyers. She added that she plans to expand the business deduction from $5,000 to as much as $50,000 to help small businesses start up.

The Democratic nominee says she will pay for her proposals by increasing the corporate tax rate from 21% to 28%, a cut that congressional Republicans pushed through when Trump was in office. Trump has said that if reelected, he would lower the rate to 15% for companies that make their products in the U.S.

“With the vision I’m laying out today, we will not only stop our businesses from going to foreign countries, but under my leadership, we will take jobs to other countries,” Trump said in a speech Tuesday on the economy in Georgia.

Harris introduces economic ‘philosophy’ in Pittsburgh

In her speech Wednesday, Harris said she would encourage the government to work with private companies as a way to expand the middle class.

Harris drew on her middle-class upbringing to emphasize that she would approach economic policy in a practical way that addressed the needs of businesses and families trying to stay afloat.

“As president, I will build on my core values of integrity, dignity and opportunity. And I promise to be pragmatic in my approach,” Harris told the Economic Club of Pittsburgh.

Borrowing a phrase from former President Franklin Delano Roosevelt, Harris said she would pursue “bold, persistent experiments” that are not “bounded by ideology” and will seek “practical solutions” to problems, using metrics and facts, and focusing on crises and long-term goals for the country.

Among the proposals Harris touted: a $6,000 per child tax credit for families with newborns and $25,000 in down payment assistance for first-time homebuyers.

“I don’t want you to have to worry about paying your monthly rent if your car breaks down, I want you to be able to save for your child’s college education, take a nice vacation every now and then, I want you to be able to buy Christmas presents for your loved ones without feeling anxious when you look at your bank statement,” Harris said. “I want you to be able to build some wealth.”

Harris said she would cut taxes for the American middle class and ensure every American has access to paid leave that can be used to care for children and elderly parents.

She cited the example of her late mother, a cancer researcher in a federally funded lab whom she said she had to care for when she was diagnosed, and contrasted her vision of a “strong middle class” with Trump’s agenda.

“He’s not interested in growing our middle class. He’s only interested in making life better for himself and people like him — the wealthiest Americans. You can see that in his economic agenda,” Harris said in Pittsburgh.

Heartburn over Harris and Trump’s economic policies

Harris and Trump did not provide many details about how their plans would reduce costs.

Trump has said he would bypass Congress to impose tariffs on foreign imports of 20% or more. Harris and some economists have compared the Republican proposal to a sales tax that could hurt both consumers and American businesses.

Harris would work with the Legislature to enact most of her proposals. For example, the price gouging ban and her proposed tax breaks for businesses and consumers would need congressional approval.

Economic agencies in the spotlight

Harris’ decision to make her economic case to Pittsburgh’s business community is a sign of how her campaign views the race six weeks before the election, a major industrial city she has visited multiple times in the roughly two months since becoming the Democratic nominee, including in preparation for her only debate with Trump.

Trump had a nearly six-point lead over Harris on the economy in a USA TODAY/Suffolk University poll released earlier this month. A national poll gave Harris a four-point lead in the race. A separate Pennsylvania poll showed Harris narrowly ahead of Trump in Pennsylvania, a result that was within the margin of error.

Her campaign this week touted a letter from more than 400 economists endorsing her over Trump, saying Trump’s policies could fuel inflation, hurt GDP growth and increase unemployment.

Contributor: Swapna Venugopal Ramaswamy