I’m a Financial Planner: 4 Ways Kamala Harris Differs From Joe Biden on Issues That Impact Your Wallet
Now just three months away, the presidential election has the country abuzz with questions about what’s next for the economy and the individual. With Joe Biden bowing out and leaving Kamala Harris in his place, experts predict some changes going forward — in the event that Harris is elected the next president, of course.
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Biden and Harris have quite a few similarities in terms of their stance on issues that might affect you financially. This isn’t surprising considering they share a political party and, for the past four years, worked together as Biden served as the U.S. president.
But the two also have their differences. Some of these differences are pretty significant, while others are much more nuanced. All of them could impact your wallet in different ways.
GOBankingRates spoke with Justin Godur, a finance advisor and the founder of Capital Max, about the key ways Harris differs from Biden. Here’s what he said.
Tax Reforms
“Kamala Harris and Joe Biden have nuanced differences in their economic policies that could impact personal finances,” said Godur.
One such area is in taxation. Godur noted that Harris tends to favor more progressive tax policies than Biden did. Biden, meanwhile, had a more balanced approach to taxation — particularly to how the wealthy are taxed. Both candidates have consistently prioritized reducing wealth inequality, though.
It’s possible that tax reforms under a Harris Administration could favor certain industries, which could help the average worker.
“[Harris’] stance on increasing taxes for higher-income earners…could lead to increased government spending in areas like healthcare and education,” said Godur. This could, in theory, alleviate some of the higher costs for the average person.
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Infrastructure Investments and Wages
Unlike Biden, who had a more centrist approach — meaning he prioritized gradual change — Harris has so far proven to be quite the opposite, said Godur.
“[Biden] emphasizes moderate tax increases primarily targeting corporations and the wealthy, along with substantial infrastructure investments,” Godur said. “Biden’s focus on strengthening the economy through infrastructure could lead to job creation and potentially higher wages.”
This could be a boon for the average worker. According to the U.S. Bureau of Labor Statistics, the median household income is $74,755, but this isn’t always enough to support a family. Wages also vary wildly based on industry, location, expertise, company, and other factors.
Just because Biden had a different approach doesn’t mean Harris won’t still make some positive changes that help the individual’s financial situation. In fact, Godur believes, it’s quite the opposite.
“Harris tends to be more aggressive on social justice and economic equity, pushing for higher minimum wages and tax reforms to reduce wealth inequality,” said Godur. This is in contrast to Biden’s more balanced progressive goals and more pragmatic policies.
Depending on how successful these reforms are, a Harris Administration could mean faster, positive changes.
Social Programs
Both Biden and Harris have long emphasized the importance of sustaining social programs. But Godur believes that Harris is more progressive in these areas than Biden was. In particular, she seems to prioritize making substantial investments in social programs — like Medicare and Social Security.
This could be both a good and a bad thing for the individual.
“Harris’s expansive social programs could lead to higher government spending, which might spur inflation if not balanced by increased revenues,” said Godur. “Conversely, Biden’s infrastructure-driven approach aims at long-term economic growth.”
Biden’s approach was more aimed at stabilizing inflation, something that’s been seen in recent times. The Federal Reserve’s targeted inflation rate is 2%. During the COVID-19 pandemic, it hit a near record-high of 9.1%. In June 2024, however, the inflation rate was 3%.
For the average consumer, inflation — which also impacts interest rates — is a major concern. The higher the inflation rate, the more expensive everyday consumer goods and services are. As for those who rely on financing to afford things like real estate or cars, a higher rate could make these purchase much more expensive due to rising interest rates.
That said, if Harris also manages to balance higher wages with great investment into social programs, it could offset the costs — if they end up rising.
Targeted Financial Relief
Harris is also a bit more focused on providing targeted financial relief to lower-income households. This results from Harris’s push for higher minimum wages and expanded social safety nets.
The downside is that business owners may see higher operational costs as a result. But the upside is that lower-income individuals may see more immediate relief than they would have under a second Biden term.
That said, both individuals have made great strides in this area. Take student loan borrowers as an example. Under the Biden-Harris Administration, approximately $153 billion in student loans have been forgiven for almost 4.3 million borrowers nationwide. While more relief would be beneficial, even this has had positive effects on the individual’s wallet.
Bottom Line: The Differences Are Still Pretty Nuanced
For the most part, the differences between Kamala Harris and Joe Biden are pretty nuanced. Both have — or had — policies and goals that could influence finances on an individual scale.
“Harris’s policies might benefit lower-income individuals through direct support, whereas Biden’s approach could foster a stable economic environment conducive to broader financial growth,” said Godur.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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