Biden to celebrate progress of American economy in Thursday remarks
(WASHINGTON) — In remarks on Thursday at the Economic Club of Washington, D.C., President Joe Biden will celebrate the progress of the American economy, but stop short of declaring victory, senior advisors told ABC News on a call previewing the remarks.
Biden said in a post on X that he will speak about what the first key rate cut since 2020 and falling inflation “means for Americans.”
“President Biden is going to speak to a new milestone, inflation and interest rates are falling at the same time, employment, wages and GDP are rising,” White House Chief of Staff Jeff Zients told reporters. “I want to be really clear, this is not meant to be a declaration of victory. It’s meant to be a declaration of progress, significant progress. The President believes it’s important to mark this moment for the country by laying out how far we’ve come, while also outlining the work we still have to do.”
Zients added that Biden will lay out the three big pillars of his economic playbook: the historic response to the COVID-19 crisis, the administration’s work to address global inflation and efforts to build an economy that invests in all Americans.
But Zients added that Biden and Vice President Kamala Harris are still looking ahead to the work that is not finished, pointing to the cost of childcare and housing as two of the biggest areas.
“The president knows this is no time for a victory lap, which is why he will talk about the work ahead every single day, the president and vice president, both, on what more can be done to make the economy stronger, create more jobs and, importantly, lower costs, the President will lay out how we build on the progress that we’ve made across these three and a half years, and what’s at stake,” Zients said.
National Economic Adviser Lael Brainard also talked about the Federal Reserve’s Wednesday rate cut announcement and how recent data is a good sign, but also noted that costs are still high for American families.
“The president will note this hard won progress, but emphasize that we must continue to work together to tackle long standing affordability challenges for middle class families,” Brainard said. “America needs more housing. That’s why it’s critical to move forward on ambitious plans to bid to bring housing costs down by building millions of new affordable homes and providing incentives for states and localities to remove outdated obstacles to building it’s essential we continue to enable more workers to participate in the labor force and to make it easier and more affordable to raise a family.”
One White House official on the call was asked about whether the administration was concerned about rising unemployment in response to Wednesday’s rate cut, but the official brushed off the concern, saying that the Fed’s data shows “the labor market remaining solid,” and adding that unemployment has “remained the lowest on average of any administration in 50 years.”
A reporter also asked whether rising tensions in the Middle East could be a setback in the fight against rising inflation. The different White House official said that it is one of the “geopolitical risks that we consistently monitor.”
“But our assessment, you know, right now is that the economy is in a healthy place, and that the kind of range of risks, while we continue to monitor them are do not pose a significant risk to the to the outlook,” the White House official added.
(WASHINGTON) — Former President Donald Trump participated in a wreath-laying ceremony at Arlington National Cemetery on Monday morning to mark the third anniversary of the Kabul airport attack that killed 13 U.S. service members.
Trump will also later address the National Guard Association at the group’s annual conference in battleground Michigan.
The chaotic withdrawal of troops from Afghanistan in August 2021 continues to be a focal point of conservative criticism of the Biden administration.
Trump has long decried President Joe Biden’s handling of what he said on Monday was a “botched” exit and “embarrassing” moment for the nation, though recently has included Vice President Kamala Harris — his new 2024 rival — in his denunciation of the event.
“Exactly three years ago this month, the weakness and incompetence of Kamala Harris and Crooked Joe Biden delivered the most humiliating event in the history of our country and one of the biggest military disasters in the history of the world,” Trump claimed at a rally in North Carolina last week.
Harris on Monday released a statement honoring the 13 U.S. service members who lost their lives when an ISIS-K terrorist detonated a suicide bomb at the Abbey Gate of the Hamid Karzai International Airport, where evacuation efforts were centered after the Taliban’s swift takeover of Afghanistan. At least 170 Afghan civilians were also killed in the bombing and dozens of others wounded.
The vice president said the fallen soldiers “represent the best of America, putting our beloved nation and their fellow Americans above themselves and deploying into danger to keep their fellow citizens safe.”
“I will fulfill our sacred obligation to care for our troops and their families and I will always honor their service and sacrifice,” she said.
Harris went on to defend Biden’s decision to end “America’s longest war.”
“Over the past three years, our Administration has demonstrated we can still eliminate terrorists, including the leaders of al-Qaeda and ISIS, without troops deployed into combat zones,” she said in the statement. “I will never hesitate to take whatever action necessary to counter terrorist threats and protect the American people and the homeland.”
Harris has previously spoken about being in the room with Biden for important decisions, including his decision to carry out a troop withdrawal from Afghanistan — which Trump reportedly tried to launch in his final days as president. The Trump administration’s negotiated peace plan with the Taliban included a date of May 1, 2021, for the final withdrawal of troops — which Biden then continued to carry out with a September deadline.
Top officials have testified before Congress on the tumultuous withdrawal, some of whom have detailed regrets about how it was handled.
House Speaker Mike Johnson on Monday announced he will present the Congressional Gold Medal posthumously on Sep. 10 to honor the 13 service members who were killed in Kabul. The medals, Congress’ highest civilian honor, will be presented to their families.
Biden, in his own statement on Monday, said the 13 Americans killed at Abbey Gate embodied “the very best of who we are as a nation: brave, committed, selfless. And we owe them and their families a sacred debt we will never be able to fully repay, but will never cease working to fulfill.”
Biden said “we must never forget the immense price that was paid for our freedom. We must never forget that each beloved service member we lost was a human being, who left behind entire families and communities. And together, we must never stop striving to be worthy of their ultimate sacrifice.”
(WASHINGTON) — Vice President and Democratic presidential nominee Kamala Harris on Wednesday unveiled a vastly expanded $50,000 tax benefit for new small businesses and a lower long-term capital gains tax than that was proposed by President Joe Biden in his budget blueprint, one of her clearest breaks yet with Biden.
Speaking to a crowd of supporters in Portsmouth, New Hampshire, Harris said, “And while we ensure that the wealthy and big corporations pay their fair share, we will tax capital gains at a rate that rewards investment in America’s innovators, founders, and small businesses,” before proposing a 28% long-term capital gains tax on people making $1 million a year or more.
Biden previously called for a 39.6% tax rate on capital gains. It is unclear where Harris stands on the additional 5% tax. While Harris’ presidential rival former President Donald Trump has not explicitly outlined a position this cycle, in 2016 he supported capping capital gains taxes at 20%, and the Heritage Foundation’s Project 2025 calls for a 15% capital gains tax.
A source familiar with the plan told ABC News that Harris believes a more moderated approach toward capital gains taxes will balance with other measures she supports to crack down on billionaires and big corporations. Harris said on Wednesday that she supported a minimum tax rate on billionaires. The source said she also supports raising the corporate tax rate and quadrupling taxes on stock buybacks.
However, the move comes as Harris and Trump seek to sharpen their economic messages to voters before facing off in their first debate on ABC News in Philadelphia next week. Trump is scheduled to give his own economic policy address on Thursday.
Harris’ announcement is part of a broader effort to generate a record-breaking 25 million new small business applications in her first term if elected, and her tax plan would represent a tenfold expansion of a $5,000 deduction already available to entrepreneurs to help cover startup costs.
An official familiar with Harris’ plans said the $50,000 benefit would help offset the $40,000 it costs on average to start a small business. The terms of the proposal would also allow eligible enterprises operating at a loss to delay utilizing the benefit until they turn a profit.
Some profitable businesses could also defer the full benefit, opting to instead use it across multiple years by deducting only earnings from the first year of business and utilizing the remainder of the total $50,000 in future years, according to literature circulated to reporters from the Harris campaign.
Harris said her administration would also seek to develop a standard deduction for small businesses to reduce the burden and cost of filing taxes, and remove barriers around occupational licensing, which inhibits workers from working across state lines.
While the literature circulated to reporters did not estimate the program’s cost, Harris told the crowd that the the plan would provide access to venture capital, support “innovation hubs and business incubators,” and increase the number of federal contracts with small businesses.
Many aspects of Harris’ proposed tax program would likely require congressional approval. The current 2017 Tax Cuts and Jobs Act, signed into law by Trump, is set to expire next year.
Harris also said that her administration would provide low- and no-interest loans to already existing small businesses. The campaign’s literature detailed a fund that would enable community banks and Community Development Financial Institutions to cover interest costs as small businesses expand in historically underinvested regions.
“We will have a particular focus on small businesses in rural communities, like right here in New Hampshire,” she said.
Both Trump and Harris have repeatedly sought to strike populist economic tones in their messaging, promising to provide relief to middle-class earners and even finding agreement on a proposed phase-out of federal income taxes on tipped wages.
Under pressure to define aspects of her policy agenda, Harris unveiled a slew of additional economic priorities last month that included, among other policies, restoring the American Rescue Plan’s expanded Child Tax Credit, proposing $25,000 in down payment assistance to qualifying first-time home buyers, capping prescription drug prices and a federal ban on price gouging in the food sector.
Meanwhile, Trump has advocated for broader reforms to U.S. economic policy, which have included tax cuts for businesses and wealthy individuals alongside an across-the-board tariff hike on imports to the U.S., generally, with tax rates as high as 60% to 100% on Chinese goods.
(LEWISBURG, Pa.) — If elections are about “the economy, stupid,” Ben McDuffee has not had the kind of confidence-boosting year that would make him feel good about keeping Democrats at the top of the ticket for four more years. And he is a Democrat.
The Lewisburg, Pennsylvania, resident lost his job late last year. He worked in financing for the auto industry and was unemployed for three months. During that time, he applied to more than 200 jobs. In March, he accepted a position at a local credit union — and a $30,000 pay cut.
That income hit, combined with higher prices at the grocery store and a recent increase in their monthly rent, meant tightening the budget. He and his wife put plans on hold to buy a home for themselves and their 11-year-old son, as interest rates rose, too.
“You know, ultimately, the question that voters ask when they go to the polls every four years is, am I in a better spot than I was four years ago? And when we’re swiping our card for groceries every week, we are absolutely not in a better spot than we were four years ago,” McDuffee said in an interview with ABC News at his home.
“So, we have to balance that with — what do we think will happen with the country if we pick the other guy?”
From what he sees everyday in his rural Pennsylvania town — a sliver of one of the most critical swing states in the country — dislike of “the other guy,” former President Donald Trump, might not be enough for Vice President Kamala Harris to overcome what he sees as a major liability: the economy.
It’s the reality of this election, and it rings especially true in his battleground state: despite a strong recovery from the global pandemic — including record-low unemployment, increased wage growth and consistently sturdy consumer spending — the economy is still a top concern for voters.
According to an ABC News-Washington Post/Ipsos poll, more than 85% of adults rank the economy and inflation as highly important for their vote for president, by far the two highest-ranking issues. And voters trusted Trump over Harris on both issues by 9 points.
“There’s a disconnect between these macroeconomic numbers that are coming out and then what we’re hearing people are reporting about how they feel about the economy,” Heidi Shierholz, the president of the Economic Policy Institute and a former chief economist for the Department of Labor during the Obama administration.
A major reason it’s such a steep political challenge, she says, is that high prices are more obvious to people on a daily basis than national statistics or even their own pay raise.
“People’s living standards are actually growing despite the higher price level. So what’s going on now is actually what we want to see,” Shierholz said. “But it still is frustrating when you go to the grocery store or wherever and you see these high prices. You don’t always think in the back of your head, ‘Well, I also got that big wage increase, I can cover this and still be okay’.”
Since the peak of the pandemic recession, the U.S. has seen an increase in overall consumer prices by 20%, according to the Bureau of Labor Statistics, while the inflation-adjusted wages have also risen, on average, by about 25%.
That leaves some people feeling worse off than they actually are — and for people like McDuffee, who have seen their income fall or stay flat, the squeeze of higher prices is particularly sharp.
“I don’t doubt the numbers. But it all comes down to what you can do with the money that you have for your family. And you don’t feel all of all these great numbers,” McDuffee said.
It’s a perception Harris knows she will need to reverse to win over voters in critical battleground states like Pennsylvania, which could be key to winning her the presidency.
“Today, by virtually every measure, our economy is the strongest in the world,” Harris said in a recent campaign rally focused on the economy in North Carolina. But she was also careful to try not to alienate voters who don’t feel those impacts.
“We know that many Americans don’t yet feel that progress in their daily lives. Costs are still too high. And on a deeper level, for too many people, no matter how much they work, it feels so hard to just be able to get ahead,” Harris added.
To address this concern, Harris and President Joe Biden have pushed a “lowering costs” campaign, a handful of policies aimed at bringing down daily prices for people.
Efforts like negotiating down the price of drugs covered by Medicare, so seniors pay less for their prescriptions, and passing regulations that require companies to disclose “junk fees” on products like hotel rooms or concert tickets. For nearly 4.8 million people, the administration has canceled student loans.
For McDuffee, these policies aren’t cutting through.
He will reluctantly vote for Harris, he says, but he knows that many voters will prioritize their bank accounts in November.
“The only thing that I think a lot of consumers feel is when they swipe their card at the gas pump, at the grocery store, you know, buying back-to-school clothes, all of those items are more expensive than they were four years ago,” McDuffee said. “And I think that’s what resonates.”
Three hours southeast, though, Philadelphia City Councilmember Katherine Gilmore Richardson says she’s an example of why the Biden administration’s piecemeal policies are working — and have exponentially changed her family’s economic trajectory.
“No hesitation at all. I’m better off than I was four years ago. My family is better off because of the work of the Biden-Harris administration. And my children will be better off because of the Biden-Harris administration, if nothing more,” she said in an interview at her home in West Philadelphia.
Richardson, who has worked for the city for over 20 years, had her student debt canceled as part of major reforms to the Public Service Loan Forgiveness program, or PSLF, which allows peoples’ remaining debts to be forgiven after they’ve worked in public service and made loan payments for 10 years.
She has since helped her husband and her sister, who both work in non-profits and social work, respectively, to have their debts canceled, as well.
Through her family’s savings on student debt payments, Richardson, a mother of three, enrolled her two youngest children in one-on-one reading camp this summer.
Yet Richardson knows that receiving debt relief is a unique reason to feel good about the economy. Of the 43 million Americans with student loan debt, roughly one in 10 have so far had loans canceled by the Biden-Harris administration.
“I do hear from my constituents who have a number of concerns regarding the economy and their ability to be able to afford good quality housing to, you know, for food costs and to be able to take care of their families,” Richardson acknowledged.
Still, a delegate to the Democratic National Convention and a big fan of both Biden and Harris, Richardson says she believes her story reflects ongoing efforts to reduce financial burdens and a reason to re-elect the Democrats.
“I think we have to do a better job of telling that story and talking about the work that they’re seeking to do,” she said.