The child tax credit has been a topic of political debate in Washington for a long time. Both Republicans and Democrats have put forth proposals to expand the credit, and now Vice President Kamala Harris is adding her voice to the call for change.
As part of her campaign’s economic proposals targeted at middle-class voters, Harris is suggesting an increase in the child tax credit to $6,000.
Currently, households with children under 16 and earning $200,000 ($400,000 for couples) are eligible for a $2,000 credit, with only $1,600 of that amount being refundable.
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Harris’s proposal would raise the child tax credit to $3,600 per child, and for families with a newborn, it would increase to $6,000.
Earlier this year, the House approved a phased increase in the refundable portion of the child tax credit for the years 2023, 2024, and 2025. However, the Senate only had two Republicans supporting a procedural vote to bring the measure to the floor on August 1.
Past efforts to raise the child tax credit
In 2023, President Joe Biden suggested raising the child tax credit to $3,000 per child for children above 6 years and $3,600 for those under 6. Although parents received an expanded child tax credit in 2021 due to pandemic relief efforts, it expired despite Democratic attempts.
The expansion of child tax credits during the COVID-19 pandemic, along with other government assistance programs, significantly reduced childhood poverty levels.
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The U.S. Census Bureau estimates that in 2021, the child tax credit lifted 5.3 million people out of poverty. By expanding the child tax credit, nearly 3 million additional Americans were kept out of poverty in 2021.
Republican stance on child tax credit
Former President Donald Trump’s running mate, Sen. JD Vance, proposed increasing the child tax credit to $5,000 per child in alignment with Trump’s priorities. Vance criticized the Biden administration and Harris for their lack of leadership on the issue.
Under Trump’s presidency, the child tax credit rose from $1,000 to $2,000 per child per year with the Tax Cuts and Jobs Act. This provision is set to expire in 2025, reducing the credit back to $1,000 per child.
