Vice President Kamala Harris has proposed raising the child tax credit to up to $6,000 in the first year of a child’s life. This is meant to help middle- and low-income families more and also to reduce income inequality by paying the rich and big businesses more.
Vice President Kamala Harris Unveils Ambitious Plan to Support New Parents with Increased Child Tax Credit
Benzinga says that Vice President Kamala Harris just presented a big economic plan in Raleigh, North Carolina. The plan’s goal is to help new parents financially in more ways. In her plan, the child tax credit would go up to up to $6,000 in the first year of a child’s life.
In 2021, it would double from the current $3,600 cap set by the American Rescue Plan. Harris thinks that this rise will help middle- and low-income families a lot and make it easier for them to handle their costs in the early years of being parents.
At the same time that Harris made her speech, Senator JD Vance also called for a $5,000 child tax credit. Some people see Harris’s plan as an answer to Vance’s idea.
Even though Senate Republicans recently stopped a similar plan, both of these ideas show that people of all parties want to improve child tax credits. Experts believe that people will still be talking about child tax credits after the election, but it will depend on how politics change in the future.
How Kamala Harris’ Plan to Reduce Child Poverty Could Impact the US Budget
The suggested $6,000 credit could help families’ finances a lot, but it would also make the budget very hard to meet. It’s thought to cost $1.6 trillion over ten years by the Tax Foundation.
Vance’s plan could make us owe another $2–$3 trillion. Harris’ campaign wants to raise taxes on rich people and big businesses to pay for these costs. This is part of a bigger plan to help families get through big changes in the economy.
Harris’ plan aims to fix income inequality by paying the rich and big businesses more, in addition to helping people right away. Harris wants to make the tax system more fair while also paying for the high cost of this increase.
He plans to do this by calling for a $6,000 child tax credit and higher taxes on the rich. This strategy shows a dedication to making families’ finances safer while also making sure that the rich pay more for social programs.
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