Kamala Harris rolls out agenda: expanded child tax credit of up to $ $6K for families with newborns

President Kamala Harris announce regarding the expansion of the Child Tax Credit (CTC) to provide up to $6,000 for families with newborns marks a significant policy initiative aimed at alleviating financial burdens on new parents. This proposal aligns with ongoing discussions about the necessity of bolstering economic support for families, particularly in light of rising living costs and economic instability exacerbated by recent global events. By enhancing the CTC, the Harris administration seeks not only to provide immediate financial relief but also to promote long-term investments in child development and family well-being.

Research has consistently demonstrated that adequate financial support during early childhood is critical for cognitive and emotional development. The proposed expansion of the CTC is expected to mitigate some of the challenges faced by low- and middle-income families, who often struggle with childcare expenses and other related costs associated with raising a newborn. By increasing the tax credit amount significantly, this initiative aims to reduce poverty rates among young children, thereby fostering a healthier population that can contribute positively to society in future generations.

The Democratic presidential nominee’s plan aims to restore the higher child tax credit enacted via the American Rescue Plan in 2021, which provided a maximum credit of up to $3,600 per child, according to a fact sheet from the campaign.

The 2021 credit was up to $3,000 or $3,600, depending on the child’s age and family’s income. Harris’ proposed tax break would increase for middle- to lower-income families for one year after a child is born.

The plan would allow for “$6,000 in total tax relief for middle-income and low-income families” for the first year of their child’s life, according to a campaign fact sheet. It also calls for the restoration of an expansion to the CTC that was passed as part of a sweeping coronavirus relief package in 2021 known as the American Rescue Plan, pressing for a $3,600 per child tax credit for some families.

The plan comes not long after Senate Republicans blocked a bill earlier this month that sought to raise the CTC amid some concerns over the work requirements for recipients.

Her ideas would cost money, yet she insisted in her speech that she would hold to President Joe Biden’s pledge not to raise taxes on any household earning $400,000 or less annually. That excludes 80 percent of taxable income, and does not take into account the recent surge in families earning over $400,000. The Harris campaign says it plans to raise revenue to cover these costs but did not provide specific offsets in its economic plan rollout. Without them, Ms. Harris’s full plan would add $1.7 trillion to federal deficits over a decade, according to the Committee for a Responsible Federal Budget, a nonpartisan budget watchdog.

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Sarah H

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