4 ways your spending habits could change if Kamala Harris wins in November

If Kamala Harris is elected as the next U.S. president in November, some changes are sure to be on the horizon. This is true regardless of the election outcome, of course, as a new president could bring policy or regulatory changes, new incentives, and other impacts on the economy and your wallet.

Read more: I'm an economist – here's my prediction for Social Security if Kamala Harris wins the election

Watch: Mark Cuban and many other venture capitalists support Harris for president – ​​here's why

While it's still unclear exactly how a Harris victory might affect your spending habits, here are some of the possible changes.

Also read why you absolutely need to talk to a financial advisor this year to increase your savings.

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Health care costs could change

A Harris presidency could impact your healthcare spending. Back in 2020, Harris championed initiatives like Medicare for All, essentially an expanded version of Medicare that would provide coverage to everyone regardless of health status or age.

Recently, however, she appears to have shifted to a more cautious approach to health care. According to a KFF article by KFF President and CEO Drew Altman, Harris' proposals instead build on the accomplishments of the Biden-Harris administration, including expanding access to private health insurance and negotiating lower out-of-pocket costs for drugs.

“The central issue is affordability, not universal coverage or health care as a right (which is also claimed) or value, quality or access (popular words in health care),” Altman wrote.

So what do these more moderate healthcare proposals mean for the average consumer? Harris has proposed, for example, capping drug costs at $2,000 a year. She has also proposed capping the out-of-pocket cost for insulin at $35 a month. And she has advocated for canceling some medical debt.

If Harris is elected and pushes through these proposals, it could mean lower out-of-pocket spending for the average American. But it's also possible that spending on preventive care or other medical expenses could increase.

Learn more: How much is Vice President Kamala Harris worth?

Green energy initiatives could lead to more incentives

Harris has not been very clear about her stance on climate policy, but there has been a lot of support for both climate and green energy initiatives under the Biden-Harris administration.

Back in 2022, under President Joe Biden, the Inflation Reduction Act was passed. This was an omnibus package that included $784 billion in funding for the country's transition to clean energy. Harris was the one who cast the deciding vote for the passage of this package.

The story continues

Harris has also supported the Green New Deal in the past, which prioritizes the use of renewable energy. If elected president, it's possible she will continue to support similar initiatives addressing climate change and sustainability in the United States.

This could lead to more incentives for purchasing energy-efficient home upgrades, solar panels or electric vehicles. For example, there is currently a tax incentive of up to $7,500 for qualified electric vehicles – available through 2032.

At the individual level, this could further encourage spending in these areas, especially in states like New York or California, where green energy has become a greater priority.

More support for childcare and education

Harris, it seems, shares many of the same views as Biden when it comes to education, particularly higher education. In a 2018 tweet, Harris wrote, “Almost all students understand the struggle with student loans. Enough is enough. It's time we abolish tuition once and for all.”

Around this time, Harris also supported the College for All Act of 2017. This bill would have made public universities and colleges free for anyone earning less than $125,000 a year. Community colleges would also have become free, regardless of income.

Although the College for All Act failed, the Biden-Harris administration continued to support student loan forgiveness and similar initiatives. Under the current administration, billions of dollars in federal student loans have been forgiven for hundreds of thousands of borrowers.

It is clear that Harris will continue to advocate for accessible higher education, which could make it more affordable even for lower-income families.

In addition, Harris is committed to increasing funding for child care and early childhood education for working families. As part of her economic program, she is also placing emphasis on expanding the federal child tax credit, which can reduce the tax burden of these families.

While these initiatives, loans and subsidies do not have a direct impact on individual spending, they could free up some money for families with children. This could also lead to more optional spending in these areas.

More disposable income for everyday goods and services

Disposable income is basically the amount you have left after taxes. It is used for essentials like mortgages, rent and groceries, as well as non-essentials.

Harris plans to raise the federal minimum wage and exempt tips from federal taxes.

“If I am president, we will continue our fight for America's working families, including raising the minimum wage and eliminating the tax on tips for service and hospitality workers,” Harris said in a speech in Nevada in early August.

In theory, this could give people more money to spend on other everyday goods and services. However, it depends on what measures are actually implemented and how they might affect the cost of those goods and services.

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