Kamala Harris Unveils $6,000 Child Tax Credit Proposal for New Parents

Harris's Ambitious Child Tax Credit Proposal

Vice President Kamala Harris is starting to unveil her economic plans, which prominently feature a proposal for a $6,000 tax credit targeted at parents of newborns. This initiative aims to alleviate financial burdens on families and significantly impact poverty rates among children.

Cost Implications of the New Child Tax Credit

The proposed Child Tax Credit could lift millions of children out of poverty, yet it comes with a substantial financial commitment. According to the nonpartisan Tax Foundation, this proposal would incur a cost of approximately $1.6 trillion over the next decade. In comparison, Secretary JD Vance’s alternative proposition to raise the existing CTC to $5,000 could cost between $2 trillion to $3 trillion.

Background on Child Tax Credit Adjustments

• The current CTC is capped at $2,000 per eligible child.
• During the pandemic, the CTC saw a temporary increase, with families receiving up to $3,600 per child.
• The expiration of this increased benefit in 2022 resulted in millions of children returning to poverty.

These recent proposals have gained traction following a previous bill aimed at modestly expanding the tax benefit, which ultimately failed in the Senate due to lack of bipartisan support.