By Trevor Hunnicutt

WASHINGTON (Reuters) – U.S. President Joe Biden will leave behind several economic policy ambitions that faced resistance in Congress or the judiciary during his four-year term.

His Vice President, Kamala Harris, may have the opportunity to revive some of the proposals if she is elected to succeed the Democrat in the November 5 election. These are some of the most important unfinished economic proposals from Biden’s term in office.

Taxes for the rich

One of the biggest unfulfilled goals of Biden and Harris’ economic policies was to raise taxes on the rich and big corporations – but not on people earning less than $400,000 a year. Both Democrats called for a reduction in taxes on workers’ tips.

The aim was to create greater equality between the super-rich, who pay only single-digit percentages of tax on their income, and the working class, who pay higher rates – partly because of lower tax rates on certain forms of capital gains.

Democrats also want to expand the U.S. tax base, which for decades has been insufficient to finance the federal government’s current spending and the country’s growing long-term social spending, such as Social Security and Medicare.

Republicans and some economists argue that the proposed measures could dampen business activity and economic growth and push the people and companies responsible for creating jobs to other countries.

The debate will reach its climax in 2025, when the provisions of the Tax Cuts and Jobs Act expire. This law was signed by former Republican President Donald Trump in 2017 and included, among other things, a reduction in corporate and income tax rates and an increase in the family tax allowance.

COMBATING SOCIAL INSTITUTIONS

Biden and Harris also wanted to expand the government’s role in combating social ills – from child poverty to old age misery, inadequate health care and educational inequality.

They briefly expanded the child tax credit, which gave parents up to $3,600 per child in 2021. But the measure faced opposition from Republicans and expired after this year, despite leading to a significant decline in child poverty.

The Democrats want to reintroduce the measure and Trump’s campaign team has signaled that it is open to expanding the credit.

Biden and Harris also want to provide additional funding to provide paid family leave and create jobs in elder care and education. Biden and Harris’ efforts to forgive student loans have faced significant resistance in the courts.

Republicans often question the fairness and effectiveness of economic interventions in the public sector and call for the government to focus more on tax cuts, deficit reduction, and national security.

INFLATION

In the post-Covid-19 era, Democrats have been plagued by voter anger and Republican attacks over inflation, which they initially dismissed as “transitory.”

While administration officials see the Federal Reserve as primarily responsible for controlling inflation, Biden and Harris have described reducing costs as their top economic policy priority.

They have focused on corporate “greed” and supply chain problems, pushing for stronger competition law enforcement and the replacement of rusty bridges and lead pipes that can drive up costs and slow economic growth potential.

And they were willing to push U.S. fossil fuel production to record levels despite their climate goals and use strategic oil reserves to lower prices at the pump. Trump said the reserves should only be used in an emergency.

Housing accounts for a third of U.S. spending, and Harris has indicated she wants to do more to reduce the high costs that have made home ownership unaffordable for many.

INDUSTRIAL POLICY

Biden and Harris are pushing hard for a new U.S. industrial policy that uses government guidance and financing to protect and stimulate growth in specific industries.

Sectors favored by Democrats include clean energy, electric vehicles, aerospace, quantum computing, cybersecurity and semiconductors.

Biden and Harris argue that expanding manufacturing in these areas could create jobs, raise wages, strengthen unions, stimulate economic activity, increase economic competitiveness with other countries and maintain the U.S. national security edge.

(Reporting by Trevor Hunnicutt, editing by Deepa Babington)