Kamala Harris stretched the truth about the benefits of her economic policies during her testy debate against Donald Trump, according to one of the titans of Wall Street.
Goldman Sachs CEO David Solomon called out the Democratic presidential nominee for a claim she made during Tuesday’s showdown in which she touted the investment bank’s analysis of her plan — saying the Vice President blew the report out of proportion.
Solomon pointed put that the report “came from an independent analyst” and that Harris left out key details – including that the difference on the economy between the rival plans was “about two-tenths of 1%.”
“I think this blew up into something that’s bigger than what it was intended to be,” Solomon told CNBC on Wednesday.
“What the report did is it looked at a handful of policy issues that have been put out by both sides, and it tried to model their impact on GDP growth,” Solomon explained. “The reason I say a bigger deal has been made of it is what it showed is the difference between the sets of policies that they’ve put forward is about two-tenths of 1%.”
Harris had painted her vision for the economy as being superior to that of the former president’s.
“I am offering what I describe as an opportunity economy, and the best economists in our country, if not the world, have reviewed our relative plans for the future of America,” she said during the debate.
“What Goldman Sachs has said is that Donald Trump’s plan would make the economy worse, mine would strengthen the economy.”
Wall Street investors have expressed concerns that Harris’ proposed corporate tax hikes would hit corporate earnings.
She has also proposed raising the capital gains tax rate, which she argues will sway investors to put more money into small businesses and startups.
Analysts have said this method typically under-delivers when it comes to raising government revenue.
While Trump’s tax proposals are widely regarded as better for businesses, some economists worry his plans may reheat inflation and raise the national deficit.
