Although the race for president is heating up, both Vice President Kamala Harris and Donald Trump’s running mate, JD Vance, want to expand the Child Tax Credit (CTC) and make changes to the policy.
The Child Tax Credit is an important way for families with children to get money to help them. The credit was temporarily raised to $3,600 per kid during the COVID-19 pandemic. The government says this helped 2 million children get out of poverty. Family support was greatly improved by this increase, which helped them pay for important things like food and child care.
Proposed Changes to the Child Tax Credit
The higher CTC didn’t last long, though. At the end of 2021, it went back to its earlier level. Families can get up to $2,000 for each child under the present rules. Even so, a lot of families are still having a hard time with the high prices of things they need, like food and housing.
Both Vice President Kamala Harris and JD Vance want to expand the CTC because they know that families are still having trouble with money. The changes they want to make are meant to help families deal with the high cost of living by giving them more financial aid and support.
During a speech in Raleigh, North Carolina, on August 16, Vice President Kamala Harris laid out her economic policy plan. She stressed the need for more help for families through an expanded Child Tax Credit.
As the discussion about the CTC goes on, it’s clear that expanding this credit could help millions of families in a big way, easing their financial stress and making their general health better.
There is a discussion going on about how much child care costs, and Harris and JD Vance, who is Donald Trump’s running mate, have both called for big increases to the child tax credit (CTC). The costs of child care are going through the roof, so these ideas are meant to help American families out.
Rising Child Care Costs
Families across the nation are grappling with extreme child care costs. According to a new report from KPMG, the price of day care and preschool has surged by an astonishing 263 percent between 1990 and April 2024. This dramatic increase underscores the urgent need for financial support for families.
Diverse Proposals for the Child Tax Credit
At this point, both the Democratic and Republican candidates for president want to increase the CTC to help with the rising costs. Their ideas, on the other hand, are very different in how they would help American families.
- JD Vance’s Proposal: Under Vance’s plan, families would receive a tax credit of $5,000 per child.
- Harris’s Proposal: Harris has suggested a more dynamic approach, offering $6,000 per child for the first year after birth and $3,600 per year for every subsequent year.
Key Differences in the Proposals
The main differences between the two plans are the amount and income limits. Both of them want to increase the current credit. The way families in different income brackets profit from the CTC could change a lot because of these differences.
One important thing that is still not clear is whether the CTC would be refunded under either plan. Tax credits that can be refunded can be more useful, especially for low-income people who might not owe as much in taxes.
It is important to keep a close eye on these ideas and how they might affect family finances as the debate goes on. The main goal is to make sure that families get the help they need to deal with the rising cost of child care.
Lower-income families often face significant challenges when it comes to tax benefits, as they may not owe enough in taxes to take full advantage of certain initiatives. This issue is particularly relevant in the ongoing debate about the Child Tax Credit (CTC).
Key Differences in Candidates’ Proposals
The proposals from the two candidates offer distinct approaches to the CTC. Let’s take a closer look at what each candidate is suggesting:
Vance’s Plan
- No Income Restrictions: Vance proposes removing income restrictions altogether, which means that all families, regardless of their earnings, would qualify for the CTC.
Harris’s Plan
- Maintaining Current Income Guidelines: Harris supports keeping the existing income thresholds, where only couples making $400,000 or less and individuals earning $200,000 or less are eligible for the credit.