The child tax credit has become a key talking point in the lead-up to the 2024 election, with Vice President Kamala Harris proposing an ambitious expansion plan. During a debate with former President Donald Trump, Harris unveiled her vision to extend greater financial support to families with newborns.
Harris’ proposal highlights a $6,000 child tax credit for families during the first year of a child’s life. This significant boost aims to provide financial relief during the critical early stages of child development, a time when many parents face substantial costs.
Changes in the Proposal
Harris first introduced this expansion during her economic policy pitch, just before the Democratic National Convention. The key change she proposes is a larger child tax credit for families with newborns, offering $6,000 in tax relief. This increase is targeted to support new parents during a financially challenging period, helping them navigate the high costs associated with raising a newborn.
Her proposal also includes restoring the child tax credit to 2021 levels for other children, marking a return to the expanded benefits seen under President Biden’s American Rescue Plan.
Child Tax Credit
The child tax credit has emerged as a significant issue for both Democrats and Republicans. While Harris has made this expansion a focal point of her platform, former President Donald Trump and his running mate, Sen. J.D. Vance, have also expressed support for extending the credit, though their proposals differ.
Trump’s administration previously expanded the credit in 2017, increasing it from $1,000 to $2,000 per child through the Tax Cuts and Jobs Act. However, this credit is set to expire in 2025 unless further legislative action is taken.
Vance, a prominent voice among Republicans, recently stated that he supports increasing the child tax credit to $5,000 per child, indicating a shared interest in providing greater financial relief to families.
Impact
One of the most significant expansions to the child tax credit came in 2021 under the American Rescue Plan. The law temporarily increased the credit to $3,600 for children under 6 and $3,000 for children aged 6-17. These changes were fully refundable and offered some payments as monthly benefits, providing immediate financial relief to families.
Research from Columbia University’s Center on Poverty & Social Policy revealed that the 2021 expansion had a substantial impact on reducing child poverty. The data showed a 30% reduction in monthly child poverty rates, benefiting millions of American families.
However, Congress did not renew this temporary expansion after 2021, and the child tax credit reverted to its previous level of $2,000 per child.
Current Child Tax Credit
The current child tax credit offers $2,000 per child under 17. Of this amount, $1,600 is refundable, meaning families can receive this portion even if they owe no taxes. The remaining $400 is nonrefundable and only applies to reducing tax liability.
As it stands, the tax credit is scheduled to drop further to $1,000 per child in 2025, unless renewed by Congress.
| Year | Credit per Child (Under 6) | Credit per Child (6-17) |
|---|---|---|
| 2021 | $3,600 | $3,000 |
| Current | $2,000 | $2,000 |
| Post-2025 | $1,000 | $1,000 |
Harris’ Plan
During the debate, Harris reiterated her commitment to supporting young families, especially those with newborn children. Her plan calls for increasing the child tax credit to $6,000 during a child’s first year of life, along with restoring the 2021 expanded levels for other children.
To fund this expansion, Harris has proposed raising taxes on corporations and the wealthy. While specific details on how these tax increases will be implemented remain unclear, this proposal underscores her broader economic agenda, which prioritizes middle-class families and poverty reduction.
Republican Response
On the Republican side, both Trump and Vance have voiced support for extending the child tax credit. While Trump’s campaign has not laid out a detailed plan, Vance has advocated for a $5,000 tax credit per child. Trump’s previous expansion of the credit during his administration remains a significant talking point, and his 2024 campaign has hinted at considering further expansions.
Child Tax Credit Matters
Expanding the child tax credit would provide much-needed financial support for families, helping them cover the rising costs of childcare, healthcare, and education. Proposals like Harris’ $6,000 credit for newborns would directly impact millions of families, offering relief during a critical time in a child’s development.
As both Democrats and Republicans discuss various expansion ideas, the future of the child tax credit is poised to play a pivotal role in the 2024 election.
FAQs
What is Kamala Harris’ child tax credit proposal?
What is Kamala Harris’ child tax credit proposal?
How much is the current child tax credit?
It’s currently $2,000 per child under 17.
When will the current child tax credit drop?
It will reduce to $1,000 per child in 2025.
Did the 2021 child tax credit reduce poverty?
Yes, it reduced child poverty by nearly 30%.
How will Harris fund her expansion?
She plans to raise taxes on corporations and the wealthy.
