Kamala Harris Parents: Understanding the New Child Tax Credit Proposal

Kamala Harris Parents Proposal Explained

Vice President Kamala Harris is starting to unveil her economic plans, which include a proposal to provide a $6,000 tax credit for parents of newborns. This legislative move aims to support families amid rising costs. The enhanced tax credits could potentially lift millions of children out of poverty and provide relief to middle-class families with the expenses of raising kids.

Tax Foundation Analysis

However, the proposal may come with a hefty price tag, as the nonpartisan Tax Foundation estimates the 10-year cost at approximately $1.6 trillion. Interestingly, this amount is less than Sen. J.D. Vance's competing proposal to boost the Child Tax Credit to $5,000, which could cost between $2 trillion to $3 trillion over the next decade, according to the Committee for a Responsible Federal Budget.

Historical Context of the Child Tax Credit

• The current Child Tax Credit stands at $2,000 per eligible child.
• During the pandemic, lawmakers temporarily expanded the benefit, granting as much as $3,600 per child.
• The expiration of this boost in 2022 led to millions of children being pushed back into poverty.
• Child advocates are urging lawmakers to consider another expansion of the program.

Both proposals follow a failed bill in the Senate that aimed to provide a modest expansion of the tax benefit, which was thwarted by Republican opposition.