Study: Harris Economic Agenda Could Add $2T to Deficit

Vice President Kamala Harris is trying to convince voters her economic platform will be cutting costs for Americans, but a study released Friday revealed the Democrat presidential candidate's plan will increase the nation's deficit by $1.7 trillion over a decade.

The study by the nonpartisan nonprofit Committee for a Responsible Federal Budget also said the figure would grow to $2 trillion if temporary housing policies were made permanent.

Earlier Friday, Harris revealed the first policy statement of her campaign, now almost a month old. Her "Agenda to Lower Costs for American Families" would, in her first 100 days in office, "cut taxes for the middle class, reduce grocery costs, take on price gouging, lower the costs of owning and renting a home, continue to bring down the costs of prescription drugs, and relieve medical debt for millions of Americans," according to a fact sheet released by her campaign.

Much of this agenda is regulatory, including the ban on "price gouging" of food and groceries.

The tax-and-spending elements of the agenda include expanding the child tax credit by as much as $6,000 for newborns; extending the enhanced Affordable Care Act subsidies; expanding the earned income tax credit; establishing a first-time homebuyer tax credit of up to $25,000; further supporting affordable housing with tax incentives for building starter homes; an expansion of existing tax credits to support the development of affordable housing, including a $40 billion housing innovation fund; and lowering prescription drug costs.

"Based on our understanding of these policies, we estimate the new tax credits and spending would cost about $1.95 trillion over 10 years from FY [fiscal year] 2026 through 2035, or $2.25 trillion if the housing policies were made permanent," the study said. "This is partially offset by roughly $250 billion of savings from lower prescription drugs costs — assuming the Harris plan closely matches the Biden-Harris administration's recent proposals.

"On net, this means the agenda would add $1.7 trillion to deficits as written [before interest]. The Harris campaign has emphasized that the major housing policies would only be in effect for four years. However, if they were extended permanently, the fiscal impact would grow to $2 trillion."

Although the Harris campaign does not specify how these proposals would be financed, the fact sheet said she and her running mate, Minnesota Gov. Tim Walz, would "fulfill their commitment to fiscal responsibility, including by asking the wealthiest Americans and largest corporations to pay their fair share — steps that will allow us to make necessary investments in the middle class, while also reducing the deficit and strengthening our fiscal health."

"Importantly, Vice President Harris' 'Agenda to Lower Costs for American Families' represents just one part of her overall campaign agenda," the study said. "Previously, Vice President Harris has proposed eliminating taxes on tips and raising the minimum wage, which we estimate would cost between $100 and $200 billion over a decade.

"She has also said she will release plans supporting education, child care, and long-term care, among other policies."

Newsmax reached out to the Harris campaign for comment.

Michael Katz ✉

Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.

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