$100 billion tax credits! Harris wants to "revitalize American manufacturing"
U.S. Vice President Harris has pledged to fund $100 billion in tax credits over the next decade by raising taxes on overseas corporate income, aiming to stimulate investment in American manufacturing, especially in cutting-edge industries such as biotechnology, aerospace, artificial intelligence, and traditional industries. This plan is a continuation of the Biden administration's policies, emphasizing government intervention to safeguard economic security. Economists believe that although the costs of industrial policy may exceed the benefits, it is still effective in areas related to national security
Harris's economic policy emphasizes government intervention, and will support the U.S. manufacturing industry through a tax credit plan to safeguard national economic security.
On Thursday, September 26th, The Wall Street Journal reported that Kamala Harris, the U.S. Vice President and Democratic presidential candidate, pledged yesterday that if elected president, she would use government power to support the U.S. manufacturing industry, making federal intervention a core policy of her economic plan.
Specifically, Harris will support a new tax credit plan — by increasing taxes on U.S. companies' overseas earnings to fund a $100 billion tax credit over the next decade. This credit plan will invest billions of dollars in the U.S. manufacturing industry, aiming to stimulate next-generation industries crucial for economic development and national security, including biotechnology, aerospace, artificial intelligence, quantum computing, and traditional industries like iron and steel manufacturing.
The Biden administration has long advocated for such policies, investing billions of dollars to support domestic manufacturing of computer chips, electric vehicles, batteries, and other high-tech goods in the U.S. Harris's plan is essentially a continuation of Biden's efforts over the years, aiming to use government tools and fiscal measures to drive the development of key economic sectors. This approach, known as "industrial policy," has gradually gained support from some Republicans.
Robert Barbera, an economist at Johns Hopkins University, believes that Harris's inclination towards this industrial policy is reasonable, as certain industrial manufacturing capabilities are crucial for national economic security.
Michael Hicks, an economics professor at Ball State University in Indiana, also stated that industrial policy often costs taxpayers more than the benefits, as high-tech factories are highly automated, resulting in relatively fewer jobs created by such projects. However, when it comes to matters related to national security, this approach is useful.
In recent years, U.S. factory employment has shown an unstable trend, with the manufacturing industry currently accounting for only 8.1% of U.S. employment.
Trump has also placed the U.S. manufacturing industry at the core of his economic plan, but he aims to support domestic producers through import tariffs and targeted corporate tax cuts. Harris's campaign team criticized Trump's proposals, stating that they only benefit the wealthy and corporations, not middle-class families. The costs of new tariffs may be passed on to American consumers, leading to price increases