Vice President Kamala Harris is set to propose a new plan aimed at cutting taxes for middle-class and lower-income Americans, offering tax relief for more than 100 million individuals. The plan includes reviving or extending temporary measures put in place by President Joe Biden and congressional Democrats during the initial two years of Biden’s term. One key aspect of the proposal is the restoration of the American Rescue Plan’s expansion of the child tax credit to $3,600, up from $2,000, and making it permanent. A new child tax credit of up to $6,000 for families with children in their first year of life is also included.
Additionally, Harris’ economic policy aims to expand the earned income tax credit (EITC) to provide frontline workers without dependent children a tax reduction of up to $1,500. The package would also extend the more generous Affordable Care Act premium subsidies that are currently set to expire at the end of 2025. These measures have led to record levels of sign-ups for Obamacare coverage. While the specifics of how long these provisions would be in effect are not detailed in the proposal, Harris is expected to formally unveil her economic policy during a speech in Raleigh, North Carolina.
In addition to tax cuts, Harris’ broader economic policy plan includes a four-year strategy to lower housing costs, featuring $25,000 in down payment assistance for first-time homeowners and incentives to encourage the construction of new housing. The plan also calls for a federal ban on price gouging to lower grocery prices and everyday costs. This economic agenda comes in the face of attacks from the Trump campaign, particularly from GOP vice presidential nominee JD Vance, who has criticized Harris for being anti-family. Vance has proposed increasing the child tax credit to $5,000 per child.
Harris’ campaign has taken aim at Trump’s economic agenda, arguing that it primarily benefits the ultra-wealthy and corporations, rather than working-class and middle-income families. The campaign contends that Trump’s tax plan will offer significant tax cuts to billionaires and big corporations while making it easier for wealthy individuals to avoid paying their fair share. Trump’s Tax Cuts and Jobs Act of 2017 doubled the child tax credit to $2,000, but this enhancement is set to expire at the end of next year along with other individual income tax provisions.
Overall, Harris’ tax cuts proposal is part of a larger economic policy rollout that seeks to provide relief and support to middle-class and lower-income Americans. By extending and enhancing tax credits and subsidies, as well as targeting other cost-saving measures such as housing assistance and price controls, Harris aims to address economic disparities and support working families. The contrast between Harris’ proposal and the economic agenda put forth by Trump and the GOP highlights the differing priorities and approaches to taxation and fiscal policy in the upcoming election.
