The child tax credit has long been a topic of political debate on Capitol Hill. Both Republicans and Democrats have proposed expanding the credit, and Vice President Kamala Harris is now joining the call for a significant change.
Recently, her campaign unveiled a series of economic plans aimed at middle-class voters, including a proposal to increase the child tax credit to $6,000.
Currently, families earning $200,000 ($400,000 for couples) with children under 16 are eligible for a $2,000 credit, with only $1,600 of that amount refundable.
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Harris’s plan would raise the child tax credit to $3,600 per child, with families receiving $6,000 for a newborn.
Earlier this year, the House passed a bill to gradually increase the refundable portion of the child tax credit for 2023, 2024, and 2025. However, the Senate did not pass the bill, with only two Republicans supporting a procedural vote.
Past efforts to enhance the child tax credit
In 2023, President Joe Biden proposed increasing the child tax credit to $3,000 per child for children over 6 and $3,600 for children under 6. While parents received a temporary increase in the child tax credit during the pandemic, the credit lapsed despite Democratic efforts.
Expanded child tax credits, along with other government aid programs during the COVID-19 crisis, were successful in reducing childhood poverty by nearly 50%.
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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. With the child tax credit returning to normal levels in 2022, it prevented 2.4 million from falling into poverty. By expanding the credit, the Census Bureau believes an additional 3 million Americans were kept out of poverty in 2021.
Republican stance on the child tax credit
Former President Donald Trump’s running mate, Sen. JD Vance, expressed support for a larger child tax credit, proposing raising it to $5,000 per child. Vance stated that Trump also prioritizes a larger child tax credit.
Vance, along with seven other senators, did not vote on the congressional measure to increase the child tax credit. Under the Trump administration, the child tax credit was raised from $1,000 to $2,000 per child per year. However, this increase is set to expire in 2025.
