It’s Financial Planning: 4 Ways Kamala Harris Differs From Joe Biden On Issues That Affect Your Wallet

Now three months have passed, the presidential election has filled the country with questions about what is next for the economy and the individual. With Joe Biden bowing out and leaving Kamala Harris in her place, experts are predicting changes to come — in the event that Harris is elected the next president, of course.

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Biden and Harris have a lot in common in terms of their stance on financial issues. This is not surprising when we consider that they share a political party, and four years ago, they worked together when Biden served as the president of the United States.

But both of them have their differences. Some of these differences are very important, while others are very different. All of them can affect your wallet in different ways.

GOBankingRates spoke with Justin Godur, financial advisor and founder of Capital Max, about the key ways Harris differs from Biden. This is what he said.

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Tax Reforms

“Kamala Harris and Joe Biden have distinct differences in their economic policies that may affect personal finances,” Godur said.

One such area is taxation. Godur noted that Harris tends to favor more progressive tax policies than Biden. Meanwhile, Biden had a more balanced approach to taxation — especially in terms of how the wealthy are taxed. Both candidates have prioritized reducing wealth inequality, however.

It is possible that the tax changes under the Harris Administration would favor certain industries, which would benefit the average worker.

“[Harris’] the level of increasing taxes for high income earners…could lead to increased government spending in areas such as health care and education,” said Godur. This, in theory, can reduce some of the high costs for the average person.

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Real Estate Investments and Income

Unlike Biden, who had a centrist style — meaning he prioritizes gradual change — Harris has so far proven to be one, Godur said.

“[Biden] emphasizes moderate tax increases targeting businesses and the wealthy, as well as more infrastructure investment,” Godur said. “Biden’s focus on boosting the economy with infrastructure could lead to the creation of when jobs and wages can be high.”

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This can be helpful for regular employees. According to the US Bureau of Labor Statistics, the average household income is $74,755, but this is not always enough to support a family. Salaries also vary widely based on industry, location, expertise, company and other factors.

Just because Biden had a different approach doesn’t mean Harris can’t still make positive changes that help a person’s financial situation. In fact, Godur admits, it’s quite the opposite.

“Harris tends to be aggressive on social justice and economic equality, pushing for higher minimum wages and tax reforms to reduce wealth inequality,” said Godur. This contrasts with Biden’s progressive goals and more pragmatic policies.

Depending on how successful these changes are, the Harris Administration could mean rapid, positive changes.

Community Programs

Biden and Harris have long emphasized the importance of supporting community programs. But Godur believes Harris is making more progress in these areas than Biden was. In particular, he seems to prioritize making big investments in public programs – like Medicare and Social Security.

This can be good and bad for each person.

“Harris’ extensive public programs may lead to higher government spending, which may lead to inflation if not balanced by increased revenue,” said Godur. “On the other hand, Biden’s infrastructure-driven approach is aimed at long-term economic growth.”

Biden’s approach was more focused on stabilizing inflation, something that has been seen recently. The Federal Reserve’s target rate of inflation is 2%. During the COVID-19 pandemic, it reached a high of 9.1%. In June 2024, however, the inflation rate was 3%.

For the average consumer, inflation – which also affects interest rates – is a major concern. When the inflation rate is high, everyday consumer goods and services become more expensive. As for those who rely on finance to buy things like real estate or cars, a higher interest rate can make these things more expensive because of rising interest rates.

That said, if Harris is also able to balance higher wages with larger investments in public programs, it could reduce costs — if they end up rising.

Expected Financial Aid

Harris also has a strong focus on charitable giving aimed at low-income families. This is due to Harris’s push for higher minimum wages and the expansion of social security.

The downside is that business owners may see higher operating costs as a result. But the bottom line is that low-income earners could see a much quicker relief than they would in a second Biden term.

That said, both people have made great strides in this area. I’ll take student loan lenders as an example. Under the Biden-Harris Administration, approximately $153 billion in student loans are held for approximately 4.3 million people nationwide. While more relief can be good, it also has a positive effect on one’s wallet.

Bottom Line: The Differences Are Still Good

Overall, the differences between Kamala Harris and Joe Biden are stark. Both have – or have – strategies and goals that can influence the finances of the individual.

“Harris’ policies would benefit low-income people with direct support, while Biden’s approach would promote a stable economic environment conducive to broad-based economic growth,” Godur said.

Editor’s note on polling news: GOBankingRates is non-partisan and strives to accurately cover all aspects of the economy and produce balanced reports on politically charged financial stories. You can find more information on this topic at GOBankingRates.com.

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