The Daily Money: Kamala Harris and the economy

Good morning! It’s Daniel de Visé with your Daily Money, campaign overload edition.

It's been a busy week, and month, for anyone following the 2024 election. If you somehow missed it: Over the weekend, President Joe Biden announced he would exit the race, making way for Vice President Kamala Harris.

Harris would largely adopt President Biden’s economic blueprint on major issues such as taxes, trade and immigration if she becomes the Democratic nominee, despite her progressive past, Paul Davidson reports.

On taxes, for example, Harris is expected to back Biden’s plan to extend the tax cuts spearheaded by former President Donald Trump in 2017 for low- and middle-income households but to end the reductions for those earning more than $400,000 a year.

Here's Paul's report.

What happens when the Trump tax cuts end?

As Paul notes, both the Republicans and the Democrats have vowed to extend many of the Trump tax cuts, with the notable exception that the Democrats would hike taxes on the very rich.

But what if all that should change?

Major provisions in the Tax Cuts and Jobs Act of 2017 (TCJA) expire at the end of 2025, unless Congress extends them, Medora Lee reports. If the TCJA provisions sunset, most everyone will be affected one way or another, they said. Tax brackets, income tax rates, child tax credits, state and local tax deductions, mortgage interest deductions and much more will literally shift overnight.

The potential changes sound far away, but tax experts say people need to be aware and consider steps now to ensure they don’t face a host of tax surprises.

Markets say 'meh' to Harris

U.S. stocks were little moved by news President Joe Biden dropped his reelection bid and endorsed his vice president to take his spot, Medora reports.

Although Harris isn't a lock as the Democratic nominee, endorsements and campaign cash almost immediately began to pile up, making the nomination “hers to lose,” said Brian Gardner, Stifel chief Washington policy strategist.

Most analysts still favor Trump to win, at least for now, which could explain why markets didn't react to the historic news.

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.

Daniel de Visé covers personal finance for USA Today.