2024 Child Tax Credit Debate: Harris Pushes $6,000 Newborn Credit, Vance Advocates $5,000 Per Child

According to CNN, The child tax credit has emerged as a significant battleground in this year’s presidential election, with both parties vying to demonstrate their commitment to family-friendly policies. Vice President Kamala Harris, the Democratic presidential nominee, has made expanding the child tax credit a cornerstone of her four-part plan to lower costs for American families. Her proposal includes restoring the 2021 American Rescue Plan’s enhanced credit of up to $3,600 per child, as well as introducing a new $6,000 credit for newborns.

On the Republican side, Ohio Senator JD Vance, the GOP vice presidential candidate, has criticized Democrats for being “anti-family” and expressed his support for increasing the child tax credit to $5,000 per child. However, he acknowledged that the feasibility of such an increase would depend on Congress. Former President Donald Trump, the Republican presidential nominee, has also indicated his support for a substantial child tax credit, emphasizing the need for congressional negotiations.

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What is the Child Tax Credit?

The child tax credit, first enacted in 1997 under President Bill Clinton, was designed to provide financial relief to middle-income families. Initially offering a credit of up to $500 per child, it was nonrefundable, meaning it was only available to those who earned enough to pay federal income taxes. Over the years, the credit has been expanded, most notably under the 2017 Tax Cuts and Jobs Act, which increased the credit to $2,000 per child and made it partially refundable.

However, this expansion is set to expire in 2026, at which point the credit will revert to a maximum of $1,000 per child, with stricter income thresholds. This impending change has intensified the debate over the future of the credit in the 2024 election.

Candidates’ Proposals

Harris’s proposal seeks to revive the enhanced credit introduced during the pandemic, which provided up to $3,600 per child under 6 and up to $3,000 for children aged 6 to 17. This enhancement, which included monthly advance payments, was credited with reducing child poverty by nearly half in 2021. Harris also proposes adding a $6,000 credit for a child’s first year of life, though details on income thresholds for this credit are not yet specified.

Senator Vance’s proposal, while less detailed, suggests a $5,000 credit that would be available to all families, regardless of income. Vance criticized the current system for excluding some low-income families and proposed a more inclusive credit structure.

Former President Trump, while supportive of increasing the child tax credit, has emphasized the need for a collaborative approach with Congress, citing the significant financial implications of such a policy. Estimates suggest that Harris’s proposal could add $1.2 trillion to the federal deficit over the next decade, while Vance’s plan could cost between $2 trillion and $3 trillion.

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Legislative Challenges Ahead

The future of the child tax credit will likely be a key issue for the next administration. President Joe Biden and congressional Democrats have previously attempted to extend the 2021 expansion, but efforts have stalled in the Senate. As the debate continues, the outcome of the 2024 election could determine the direction of this crucial policy.