Kamala Harris’ economic plans are expected to remain largely unchanged if she becomes the Democratic presidential nominee, according to a recent analysis from Goldman Sachs.
In a poll conducted by Coinbase, it has been revealed that Donald Trump and Kamala Harris are virtually tied when it comes to attracting votes from the cryptocurrency community.
On Sunday, President Biden announced that he would withdraw from the race for the Democratic nomination following mounting pressure for him to step aside after his challenging debate performance against former President Donald Trump. Shortly after his announcement, Biden endorsed Vice President Kamala Harris, who expressed her determination to continue her campaign. She gained several notable endorsements, including those from California Governor Gavin Newsom, Pennsylvania Governor Josh Shapiro, and New Jersey Governor Phil Murphy. However, Goldman analysts indicated that this political shift is not likely to lead to significant changes in policy.
Goldman Sachs, led by chief economist Jan Hatzius, stated, “We would not expect the Democrats’ fiscal and trade policy agenda to shift meaningfully in the event that Harris is the nominee.”
The replacement of Biden with Harris has slightly increased the chances of the Democrats securing the White House, which now sits just below 40%, according to Goldman. The firm also highlighted that the upcoming expiration of personal income tax provisions from the Tax Cut and Jobs Act at the end of 2025 will force the future administration to determine whether to extend these cuts or introduce new taxes.
Goldman Sachs provided forecasts for fiscal policy if Biden were to win, including:
– 39.6%: Proposed tax rate for individuals earning $400,000 or more, up from the current 35%/37%.
– 28%: Proposed corporate tax rate under Biden, an increase from the current 21%. Analysts expressed skepticism about Congress agreeing to this rate, suggesting that a 25% rate might be more feasible. In contrast, Trump has pledged to lower the corporate tax rate to 20%.
– 5%: Proposed tax rate on Social Security and Medicare for incomes above $400,000, up from the existing 3.8%.
If Harris secures the nomination, speculation surrounds potential vice presidential picks, with high odds attributed to Pennsylvania Governor Josh Shapiro, North Carolina Governor Roy Cooper, Kentucky Governor Andy Beshear, and Arizona Senator Mark Kelly.