The proposal for a tax credit expansion will have a huge economic effect on low-income families with children. However this proposal has failed to be voted on by the Senate, now the major question is whether will Kamala Harris expand the Child Tax Credit (CTC) if she wins the election.
What’s the current situation on the Child Tax Credit (CTC)?
Low-income earning families with the hope of witnessing an expansion in Child Tax support may have their hopes dashed to the wind. The lawmakers were to pass the bill that will increase Child tax credits, however, that did not come to light on tax day, and the senate is yet to make their vote on this matter.
In late January the house already passed the legislature in a bipartisan vote with 357 in support of the motion and 70 against the motion. This case has been elongated in the Senate longer the expected which is a result of the Republican’s worries that the new tax credit will crop the willingness of families with children to work for a living.
If the deal is passed, child tax credit expansion will be a huge economic release to low-income earning families with children, these will also key priorities which include:
- The restoration of the three cooperate tax breaks.
- Low-income housing development is to receive an increase in tax credit.
- Tax breaks on Taiwanese workers and businesses in the United States of America.
Kamala Harris could reduce the tax burden on low-income earning families
“It is too soon to know the details of Democratic presidential nominee Kamala Harris’s 2024 tax agenda. But her record as a U.S. senator and her short-lived 2020 presidential candidacy show that she has strongly supported using the tax code to advance social and economic ends, such as ending child poverty and addressing global climate change.” – Forbes
Shirshikov agrees with this agenda and he affirms saying: “Her proposals have included expanding tax credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit, which would increase the disposable income of lower-income households.“
He further elaborates by saying, “These measures are designed to alleviate poverty and reduce financial stress for those at the bottom of the income distribution.”
Here is what Kamala Harris proposed about child tax credits in the past
Expanding the child tax credit
Kiplinger wrote on 31 July, “It’s important to note that specifics of Kamala Harris’ tax policy platform for her 2024 presidential campaign still need to be outlined.” Kamala Harris’s records speak high volumes about her chance of expanding the child tax credit.
During the 2020 COVID-19 pandemic, the American rescue plan raised the credit per child to about $3,600 which was significant in reducing the child poverty rate. The current child credit for a qualified child is at $2,000 with $1,700 being refundable. This reduction affects low-income families the most.
“With the end of pandemic relief measures, child poverty rates unfortunately increased.”With the end of pandemic relief measures, child poverty rates unfortunately increased.” – Kiplinger
Is Kamala Harris satisfied with the lower tax rate for lower incomes?
Dennis Shirshikov, a professor of the Department of Economics at the City University of New York. Dennis Shirshikov educates on finance, accounting, and economics. Shirshikov is recognized for his regular contributions on Time, Forbes, and Wall Street as well where is gives his thoughts on the impact of governmental policies as well as the impact taxes have on social economic classes.
Using the American graduate rate system, the tax burden will increase as your income rises. In a case, poor individuals earning less than $11,600 and married couples earning less than 23,200 which is less than a full-time minimum wage are obligated to pay a 10% income tax. The tax rate rises to 12% income tax, it increases to 22%, 24%, 30% 35%, and 37% based on an increase in individual income.
Kamala Harris is of the view that the graduated rate system is aimed at economic quality and this does not help low-income earning families retain enough of their limited resources.
In the words of Shirshikov, “Harris is expected to advocate for tax policies that provide relief to low-income individuals and families,”
