Kamala Harris’ economic agenda is unlikely to see significant changes if she becomes the Democratic presidential nominee, according to analysts at Goldman Sachs. Their assessment follows President Biden’s announcement that he would withdraw from the race after facing mounting pressure to step aside due to a challenging debate performance against former President Donald Trump.
With Biden’s endorsement, Vice President Harris has confirmed her candidacy and has garnered support from influential figures such as California Governor Gavin Newsom and Pennsylvania Governor Josh Shapiro. Despite this political shift, Goldman Sachs suggests that there won’t be a substantial change in fiscal and trade policies under a Harris-led administration. The analysts note that the probability of Democrats securing a victory in the upcoming election has slightly increased, but remains just under 40%.
Goldman Sachs has highlighted important fiscal issues that will emerge in the coming years, especially regarding tax policies. With the expiration of certain provisions from the Tax Cut and Jobs Act looming in 2025, the election’s outcome will determine the future of tax rates. Key predictions made by Goldman include significant tax changes, such as a proposed increase in tax rates for high earners and changes to corporate tax rates that could have wide-ranging implications for the economy.
As the political landscape evolves, potential candidates for the vice-presidential spot under a Harris ticket could include notable governors and senators, reflecting a broader strategy to appeal to various voter bases.
Overall, this development in the Democratic nomination process suggests a continuation of key policy themes already in place, promising a focus on fiscal responsibility as the party navigates the complexities of the current economic landscape. This aspect could bring a sense of stability and predictability for voters who prioritize economic issues in their decision-making.
In summary, if Kamala Harris becomes the Democratic nominee, her economic plans will likely align closely with Biden’s, maintaining a consistent approach to taxation and fiscal policy as demonstrated by Goldman Sachs’ analysis.