How Could Harris’ VP Pick, Tim Walz, Affect Economic Policies and Your Wallet?
Now that presidential candidate and current Vice President Kamala Harris has selected her own VP candidate in Minnesota Gov. Tim Walz, many Americans are curious about the largely unknown politician’s economic positions.
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While it’s hard to know for sure how much influence a vice president has on a president, if the Harris-Walz ticket were to win the White House in November, what might Walz bring to the table — and how could this affect the economy?
Here’s a look at what Walz’s new position may signal for the American economy and your wallet if Harris wins in November.
Supporting Workers
Vonda Copeland, an attorney focused on family and financial law, suggested that Gov. Walz and Vice President Harris likely share a vision of “pragmatic governance that expands opportunity.”
“For example, Walz champions increasing minimum wage and paid leave. Harris would probably support this nationally. At my firm, we’ve seen how financial strain prevents clients from accessing justice or providing for dependents during times of crisis. Policies that put more money in people’s pockets tend to strengthen communities,” she explained.
Walz’s priorities, like increasing the minimum wage and mandatory paid leave, could benefit many nationwide under Harris, Copeland said.
Learn More: I’m a Financial Planner: Here’s What a Kamala Harris Presidency Would Mean If You Plan To Retire in 2025
Labor Support
Additionally, Walz has been gaining endorsements from notable labor unions, such as the United Automobile Workers and the Association of Flight Attendants, according to The New York Times. This is probably because as governor he signed legislation that supported state-funded paid family and medical leave, banned most noncompete agreements, bulked up protection for warehouse workers and nursing home employees and increased funding for workplace safety.
Though, he did veto a bill that would have forced rideshare companies Uber and Lyft to set minimum wages for their drivers.
Having the support of labor unions suggests that Walz could support Harris in policies that favor workers if they win the White House. Whether or not this would translate to greater pay or other benefits is hard to say, but it certainly could be positive for workers in a number of ways. Walz has referred to himself as “an ally of working families,” according to Fast Company.
Tax Policy
While Republicans are often seen as the “lower taxes” party, Democrat Walz has actually been a proponent of reduced taxes. Though he was unable to pass a one-time rebate for Minnesota citizens in 2022, he was able to achieve it in 2023. He also enacted what Fast Company called one of the largest child tax credits in the country and reduced taxes on Social Security income.
He did, however, increase taxes for high-income earners and some businesses, including a corporate tax for companies with international operations. He aligns with Harris on this stance and it’s likely wealthy Americans could see higher taxes under a Harris-Walz administration.
Energy Costs
Though renewable energy has been controversial among those who feel that it could increase the cost of energy overall, and lead to a less reliable power grid, Democrats like Walz still prioritize it in an effort to reduce carbon emissions to fight climate change.
Walz intends for Minnesota to rely entirely on renewable electricity by 2040, and even signed legislation that would push “greener” power plants over fossil-fuel powered ones in areas that previously featured only fossil fuel. That said, he also supported the Keystone XL oil pipeline, which has long been the subject of protest by environmentalists and indigenous groups.
Ultimately, the numbers vary about whether cleaner energy really can save Americans money on the whole — it may cost more in the short term — but it seems probable a Harris-Walz administration would favor green energy policies and environmental protections.
Healthcare
Healthcare and education are other areas of likely agreement between Gov. Walz and Vice President Harris, said Bill Boersma, a life insurance consultant with OC Consulting Group.
“Gov. Walz increased school funding and wants lower premiums. VP Harris may push Medicaid expansion, subsidized insurance or student debt relief. Policies putting more money in people’s pockets benefit individuals and businesses,” he said.
Though Walz has not always been solidly behind the Obama-era Affordable Healthcare Act (ACA), citing that it drove up healthcare costs for rural farmers, he did expand healthcare benefits in Minnesota in 2024.
Walz’s personal medical history also appears to have had a strong impact on his stance on the costs of healthcare, particularly for illness and fertility. He was able to pass legislation in Minnesota that prevents medical providers from withholding medical care if patients have unpaid debt (or their widows).
He is also on record as supporting protections and access to fertility treatments, revealing that he and his wife used in vitro fertilization (IVF) to conceive their daughter. Whether or not this would trickle over to healthcare costs of the average American is uncertain, but it seems likely he would push for legislation and policies that support making healthcare more affordable.
Free Universal Lunches for Students
One of the many things that turned up in pro-Walz memes is his 2023 legislation that gave universal free school meals for kids in Minnesota schools.
In contrast, 170 House Republicans tucked a clause into a forthcoming 2024 budget, suggesting that rather than offering universal free lunches, states should determine which schools actually need them and which don’t — to “promote the efficient allocation of funds to those who need it most.”
Cannabis Funds
In 2023, Walz added Minnesota to the list of 24 states (as of April 2024) that have legalized marijuana in the U.S. According to Fast Company, Minnesota’s state department of revenue suggested that would add up to $131 million in tax revenues to the state by 2027.
Fast Company reported that Walz said, when signing the bill, “By legalizing adult-use cannabis, we’re expanding our economy, creating jobs and regulating the industry to keep Minnesotans safe.”
Though a presidential administration is unlikely to force states that haven’t legalized marijuana to do so, it’s possible that a pro-legalization team in the White House might influence holdout states to do so.
While no one can perfectly predict the future, politicians’ past choices often inform what they’ll do going forward. Walz’s actions supporting working-class Americans, clean energy, affordable healthcare, free lunches in school and more can tell you what he may prioritize if he becomes vice president.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out I’m an Economist: Here’s How Trump’s VP Pick, JD Vance, Could Impact Your Wallet.
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