The child tax credit has long been an issue of political debate on Capitol Hill. While there have been proposals by both Republicans and Democrats to expand the credit, Vice President Kamala Harris is joining the call for a major change.
On Friday, her campaign released a series of economic proposals aimed at targeting middle-class voters. One idea is to expand the child tax credit up to $6,000.
Currently, households earning $200,000 ($400,000 for couples) with children ages 16 and under are generally eligible for a $2,000 credit, but only $1,600 of that amount is considered refundable.
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Harris ' plan would expand the child tax credit to $3,600 for each child. For families with a newborn, the child tax credit would increase to $6,000.
Earlier this year, the House passed a phased increase to the refundable portion of the child tax credit for 2023, 2024 and 2025. Under the bill, the refundable portion of the child tax credit would have increased to $1,800 for tax year 2023, $1,900 for 2024 and $2,000 for 2025.
The Senate considered the bill on Aug. 1, but only two Republicans supported a procedural vote that would have brought the measure to the floor.
Past efforts to raise the child tax credit
Providing families additional funds through the child tax credit has been discussed in recent years. In 2023, President Joe Biden proposed raising the child tax credit from $2,000 per child to $3,000 per child for children 6 years old and above, and to $3,600 per child for children under 6. Parents received an expanded child tax credit in 2021 as part of pandemic relief, but the credit lapsed despite efforts among Democrats.
Expanded child tax credits, along with other government assistance programs provided during the COVID-19 pandemic, were credited with reducing the childhood poverty rate by nearly half.
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The U.S. Census Bureau estimates that the child tax credit kept 5.3 million people out of poverty in 2021. In 2022, with the child tax credit returning to its normal levels, it kept 2.4 million people out of poverty. Essentially, by expanding the child tax credit, the U.S. Census Bureau estimates nearly 3 million additional Americans were kept out of poverty in 2021.
Where the Republican ticket stands on child tax credit
Former President Donald Trump's Republican running mate Sen. JD Vance said in an interview on CBS' "Face the Nation" on Sunday that he supports an even larger child tax credit.
He proposed raising the child tax credit to $5,000 per child. Vance said a larger child tax credit is also a priority of Trump's.
"The child tax credit has languished thanks to the Biden administration because Harris has failed to show fundamental leadership. Chuck Schumer has been unable to get it through the United States Senate, and we want to have a more pro-family policy," Vance told CBS.
Vance was among eight senators who did not vote on the congressional measure to raise the child tax credit earlier this month.
Under then-President Trump, the child tax credit increased from $1,000 per child per year to $2,000 per child per year after signing the Tax Cuts and Jobs Act. The bill that included a wide range of changes to the U.S. tax code passed the Senate by a party-line vote. Then-Sen. Harris voted in opposition of the bill.
In 2025, the $2,000 credit per child is set to be reduced to $1,000 as the Tax Cuts and Jobs Act's provision expires.
