Vice President Kamala Harris has unveiled a plan to increase the child tax credit to up to $6,000 in the first year of a child’s life aiming to provide crucial support to middle- and lower-income families while also addressing income inequality by taxing the wealthy and large corporations more.
Vice President Kamala Harris Unveils Ambitious Plan to Support New Parents with Increased Child Tax Credit
According to the report of Benzinga, Vice President Kamala Harris recently announced a big economic plan in Raleigh, North Carolina that aims to give more financial help to new parents. Her plan includes expanding the child tax credit to up to $6,000 during a child’s first year and double the $3,600 limit from the American Rescue Plan in 2021. Harris believes this increase will offer crucial support to middle- and lower-income families making it easier to manage expenses during the early days of parenthood.
Harris’ announcement comes at a time when Senator JD Vance has also proposed a $5,000 child tax credit. Some see Harris’ plan as a response to Vance’s idea. Both proposals show that there is growing interest across party lines in improving child tax credits even though a similar proposal was recently blocked by Senate Republicans. Experts think discussions about child tax credits will continue beyond the election depending on future political changes.
(photo: Business Insider)
How Kamala Harris’ Plan to Reduce Child Poverty Could Impact the US Budget
While the proposed $6,000 credit could greatly help families financially it also poses a significant budget challenge. The Tax Foundation estimates it would cost $1.6 trillion over ten years. Vance’s plan could add $2-$3 trillion in debt. To cover these costs, Harris’ campaign suggests increasing taxes on wealthy Americans and big corporations. This reflects a larger goal of supporting families through major economic changes.
In addition to providing immediate relief and Harris’ plan aims to address income inequality by taxing the rich and large companies more. By proposing a $6,000 child tax credit and seeking higher taxes on the wealthy, Harris wants to balance the high cost of this expansion with efforts to make the tax system fairer. This approach shows a commitment to improving financial security for families while making sure that the wealthy contribute more to funding social programs.
