Kamala Harris’ economic policies are expected to remain largely consistent if she secures the Democratic presidential nomination, according to analysts at Goldman Sachs.
In a recent poll by Coinbase, Donald Trump and Kamala Harris are found to be nearly tied in support from cryptocurrency voters.
President Biden announced on Sunday that he would not seek re-election, amid increasing pressure following a lackluster debate performance against Trump. After this announcement, Biden endorsed Vice President Kamala Harris, who expressed her intention to continue her campaign and gained endorsements from several prominent figures, including California Governor Gavin Newsom and Pennsylvania Governor Josh Shapiro. However, analysts predict that there will not be significant changes to policy.
Goldman Sachs analysts, led by chief economist Jan Hatzius, indicated that they do not foresee a major shift in fiscal and trade policies should Harris become the Democratic nominee. Their assessment suggests that while the likelihood of Democrats retaining the presidency has slightly improved, it remains under 40%.
Furthermore, Goldman Sachs highlighted upcoming fiscal challenges, especially with impending changes to the Tax Cuts and Jobs Act, which are set to expire at the end of 2025. This means that the election winner will play a pivotal role in determining the future of tax cuts and potential new tax implementations.
The firm outlined some of its projections for fiscal policy should Biden win, revealing a proposed tax rate of 39.6% for individuals earning over $400,000, an increased corporate tax rate of 28%, and a new tax of 5% on incomes exceeding $400,000 for Social Security and Medicare.
If Harris becomes the nominee, speculation suggests that potential vice presidential candidates could include governors such as Shapiro from Pennsylvania, Roy Cooper from North Carolina, Andy Beshear from Kentucky, or Senator Mark Kelly from Arizona.