The Kamala Harris election is gaining momentum, even though economic concerns remain a central issue for many. According to a recent CFO survey, most executives believe Harris will win the presidency. Despite these economic concerns, including inflation and interest rates, there is growing confidence within corporate America that Harris will prevail. This belief persists even as former President Donald Trump is favored by business leaders on matters like the Trump economy and corporate tax policy. The survey results reveal a shift in opinion, reflecting the complex dynamics of the 2024 presidential race.
Growing Confidence in Kamala Harris
In a surprising turn, the CFO survey conducted by CNBC found that 55% of chief financial officers expect a Kamala Harris election victory. This marks a significant change from the previous quarter when the majority predicted that Trump would win. As election day approaches, corporate America appears to be preparing for a Harris-led administration. Notably, the survey shows a sharp contrast between the perception of Harris’s political prospects and her standing on economic issues.
While executives see Harris as the likely victor, only 17% believe she has a better plan for the economy compared to Trump. The majority, 55%, view Trump as stronger on economic issues, particularly on inflation and interest rates. This divide suggests that although Harris is gaining political support, the economic argument remains in Trump’s favor. Executives are particularly concerned about rising costs, including corporate tax policy, which has been a significant point of debate in the campaign.
Trump’s Edge on the Economy
The Trump economy continues to resonate with CFOs, particularly when it comes to corporate tax policy. Trump has consistently maintained that cutting taxes and deregulating industries will boost economic growth. His 2017 Tax Cuts and Jobs Act, which lowered the corporate tax rate, has been viewed as a significant win for businesses. During his campaign, Trump has doubled down on promises to reduce taxes further, vowing to cut corporate taxes to as low as 20%. This approach has garnered significant support from corporate leaders, especially those dealing with the pressure of inflation and interest rates.
However, despite Trump’s clear advantage on economic issues, the CFO survey indicates a growing belief that the Kamala Harris election is inevitable. Many executives are now considering what a Harris presidency could mean for the future of the economy. Harris has attempted to sharpen her economic message, positioning herself as a leader focused on strengthening the middle class and creating opportunities in key industries like manufacturing.
Economic Concerns Surrounding a Kamala Harris Election
While many believe in a Kamala Harris election, economic concerns remain front and center. Inflation and interest rates are the top concerns for 38% of CFOs, highlighting the financial pressure companies face. Rising interest rates increase borrowing costs, which directly impacts business investment and consumer spending. These concerns have made inflation a dominant issue in the 2024 election cycle.
Corporate tax policy is another pressing issue for business leaders. Harris has advocated for higher corporate taxes, although not to the extent proposed by President Joe Biden. Her middle-ground approach aims to balance business interests with the need to fund public services and infrastructure. However, many CFOs worry that higher taxes could stifle economic growth. On the other hand, Trump’s promise of deep corporate tax cuts continues to attract significant support from the business community.
Harris’s Economic Vision and Response
To address these concerns, Harris has been actively refining her economic platform. In a recent speech to the Economic Club of Pittsburgh, she outlined a plan that focuses on tax credits for companies that create union jobs in industries like manufacturing. She also emphasized her commitment to building a stronger middle class and expanding opportunities for entrepreneurs, particularly small businesses. Harris argues that by strengthening the middle class, the economy as a whole will benefit, countering the narrative that only lower taxes for corporations can spur growth.
In interviews, Harris has also stressed her close relationship with business leaders. She has frequently highlighted her conversations with CEOs, noting that many of them agree with her views on taxation and economic growth. She believes that by investing in industries like manufacturing and infrastructure, America can address the dual challenges of inflation and interest rates while building a more sustainable economy for the future.
Corporate Leaders Prepare for a Kamala Harris Election
Despite lingering concerns about Harris’s economic policies, many corporate leaders are preparing for a Kamala Harris election. In addition to the survey showing 55% of CFOs predicting her victory, there is also growing support for her from within the business community. High-profile figures like billionaire Mark Cuban have openly endorsed Harris, citing her pro-business stance and centrist economic vision. Cuban recently emphasized that Harris is different from Biden, particularly when it comes to corporate tax policy.
A group of over 80 former CEOs also signed a letter endorsing Harris’s candidacy. This indicates a shift among some in the business world toward accepting Harris as the likely winner. While her platform may not align perfectly with their preferences, many see her as a pragmatic leader capable of steering the economy through challenging times. The endorsement underscores the complex feelings within the business community regarding the election and the future of the U.S. economy.
The Path Forward: Balancing the Economy and Politics
As the 2024 election draws near, the tension between political support for Harris and concerns over the economy will continue to shape the narrative. The CFO survey highlights this contradiction: while the Kamala Harris election appears increasingly likely, Trump retains an edge on economic issues like inflation and interest rates. This creates a delicate balancing act for Harris as she attempts to win over both voters and corporate leaders.
To do so, Harris will need to continue refining her message and addressing key economic concerns. She has already made strides by positioning herself as a centrist on issues like corporate tax policy, distancing herself from the more progressive wing of the Democratic Party. At the same time, Trump will focus heavily on his economic record, particularly the success of the Trump economy during his first term.
Conclusion
The Kamala Harris election may be likely, but it is not without challenges. While she is favored to win by a majority of CFOs, concerns about inflation, interest rates, and corporate tax policy persist. Trump’s economic platform remains more appealing to many business leaders, especially those focused on issues like taxes and regulatory reform. However, Harris’s efforts to sharpen her economic message and present a vision for middle-class growth are gradually winning over some within the corporate world.
As the election approaches, the economy will remain a key battleground. Both candidates will need to continue addressing the concerns of voters and business leaders alike. For now, the Kamala Harris election is seen as increasingly likely, but the road ahead will require navigating complex economic and political landscapes.
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This post is originally published on EDGE-FOREX.
