Goldman Sachs has provided insights into Vice President Kamala Harris’ economic policies, suggesting that they will largely remain consistent with President Biden’s agenda if she secures the Democratic presidential nomination. This comes after President Biden announced his withdrawal from the race amidst growing criticism related to his recent debate performance against former President Donald Trump.
Following Biden’s announcement, he expressed strong support for Harris, who indicated her intention to continue her candidacy. She quickly garnered endorsements from prominent figures, including California Governor Gavin Newsom and Pennsylvania Governor Josh Shapiro.
According to analysts at Goldman Sachs, led by chief economist Jan Hatzius, they do not anticipate significant changes in the Democratic fiscal and trade policy direction should Harris become the nominee. The likelihood of a Democratic victory in the upcoming election has been slightly boosted, now estimated to be just below 40%.
As federal tax policies are set to evolve, Goldman Sachs highlighted key components of what Harris’ potential fiscal policies could look like. This includes the possibility of raising the tax rate on high-income earners, proposing an increased corporate tax, and adjustments to Social Security and Medicare taxes for the wealthy.
In terms of the vice-presidential selection, prediction markets suggest that Harris might choose from a range of governors and senators, including Pennsylvania’s Shapiro and North Carolina’s Roy Cooper, which could further diversify the Democratic ticket and appeal to a wider voter base.
This political transition presents an opportunity for Harris to present her vision while retaining critical components of an established economic framework, potentially fostering a sense of continuity and stability in Democratic fiscal policy as the election approaches.
Summary: Goldman Sachs indicates that Vice President Kamala Harris’ economic plans will likely align closely with those of President Biden if she becomes the Democratic nominee, following Biden’s withdrawal from the race. Harris has received key endorsements and is seen as a stable choice, with policy proposals potentially focusing on tax rate increases for high earners and adjustments to corporate taxes, while strategic selections for her vice president are being considered.