By CHRISTOPHER RUGABER and MELISSA GOLDIN
Vice President Kamala Harris unveiled her economic agenda in a speech Friday in Raleigh, North Carolina.
The Democratic presidential nominee laid out plans together with a proposal for a federal ban on what she referred to as value gouging on groceries, in addition to $25,000 in down cost assist for sure first-time homebuyers and tax incentives for builders of starter houses. She additionally spoke at size about decreasing drug prices and criticized the platform of her Republican opponent, former President Donald Trump.
Right here’s a more in-depth have a look at a few of her guarantees and claims.
The impression of Trump’s proposed tariffs
HARRIS: Trump “needs to impose what’s in impact, a nationwide gross sales tax on on a regular basis merchandise and fundamental requirements that we import from different international locations. … And , economists have completed the mathematics. Donald Trump’s plan would value a typical household $3,900 a 12 months.”
THE FACTS: Harris was referring to Trump’s proposal to impose a tariff of 10% to twenty% on all imports — he has talked about each figures — and as much as 60% on imports from China.
Most economists do anticipate it will elevate costs on many items. The Tax Coverage Middle, a joint mission of the City Institute and the Brookings Establishment, estimates it will scale back common incomes within the high 60% of earners by 1.8%. And the Middle for American Progress Motion Fund, a progressive advocacy group, has calculated that the upper tariffs would value households an additional $3,900 a 12 months. Nevertheless, Trump has mentioned the tariff income might be used to chop different taxes, which would scale back the general value of the coverage.
Reducing the price of insulin and pharmaceuticals
HARRIS: “I’ll decrease the price of insulin and pharmaceuticals for everybody.”
THE FACTS: Harris made this promise whereas referencing the Inflation Reduction Act of 2022, which permits Medicare to barter remedy prices straight with drug corporations. Whereas it’s troublesome to foretell whether or not she is going to be capable of maintain it, particularly with out extra particulars, latest coverage can present some clues.
For instance, the White Home introduced Thursday that it had inked offers with producers that would save taxpayers billions of dollars by flattening the record costs for 10 of Medicare’s costliest medication. Nevertheless, there are a selection of things — from reductions to the coinsurance or copays for the individual’s Medicare drug plan — that decide the ultimate value an individual pays once they decide up the medication at their pharmacy.
Highly effective drug corporations unsuccessfully tried to file lawsuits to cease these negotiations. They ended up partaking in talks and executives hinted in recent weeks throughout earnings calls that they don’t anticipate the brand new Medicare drug costs to impression their backside line. Nevertheless, the producers have warned that the Inflation Discount Act might drive up costs for shoppers in different areas.
Each the Trump and Biden administrations achieved $35 insulin copay caps for sure Medicare recipients. Biden’s caps have a wider attain, as they apply to all insulin merchandise lined by any Medicare Half D or Half B plan, according to health policy research nonprofit KFF. Trump’s utilized solely to some insulin merchandise lined by a voluntary subset of Half D plans.
A federal ban on grocery ‘value gouging’
HARRIS: “As president, I’ll tackle the excessive prices that matter most to most Individuals. … And I’ll work to cross the primary ever federal ban on value gouging on meals.”
THE FACTS: Whereas grocery costs are 25% increased than they have been earlier than the pandemic four-and-a-half years in the past, they’ve settled down just lately and it’s not clear that a lot value gouging is now happening.
Up to now 12 months, grocery costs on common are up simply 1.1%, similar to pre-pandemic will increase. Additionally, costs for many items and providers, on the whole, don’t fall considerably besides in steep, painful recessions. As a substitute, most economists anticipate that wages will rise sufficient in order that Individuals can modify to increased prices. Nonetheless, costs stay increased general than they have been simply a few years in the past.
Addressing housing shortages and serving to house consumers
HARRIS: “And by the tip of my first time period, we are going to finish America’s housing scarcity by constructing 3 million new houses and leases. … Whereas we work on the housing scarcity, my administration will present first time homebuyers with $25,000 to assist with the down cost on a brand new house.”
THE FACTS: These guarantees might find yourself working at cross-purposes. By serving to extra Individuals afford houses, the Harris proposal to subsidize down funds would nearly definitely improve demand, at a time when estimates of the U.S. housing scarcity already vary from 3 million to as high as 7 million.
Harris’ proposal to supply tax incentives to builders to encourage extra house and residence building would handle that concern, however there are numerous causes consultants cite for the housing scarcity, together with restrictive zoning laws, higher costs for constructing supplies, and even shortages of building employees, which tax incentives can’t handle.
Harris can be promising to chop pink tape that restricts new constructing, however that’s principally a state and native concern, and lots of localities are already moving to make it simpler construct houses.
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Discover AP Truth Checks right here: https://apnews.com/APFactCheck.
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