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The 2025 tax war starts early as Harris and Trump fight over the child tax credit
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The 2025 tax war starts early as Harris and Trump fight over the child tax credit

Harris’ economic program also includes traditional Democratic priorities, such as restoring the expanded child tax credit, which briefly gave families a monthly amount of money regardless of their income in 2021. The vice president also advocated an extension of the Affordable Care Act’s insurance subsidies, which would make it cheaper for people to buy health insurance on the law’s marketplaces.

Harris’ agenda offered an early glimpse into her priorities, but so far her campaign team has provided few details on how she plans to finance her plans. A Biden-era child tax credit expansion alone costs $1.1 trillion over 10 years, and extending ACA subsidies costs $400 billion over 10 years, according to the Committee for a Responsible Federal Budget.

Nor has the Trump campaign provided answers on how it will finance an expanded child tax credit along the lines of Vance’s if the former president embraces the idea. That could be especially difficult because Trump has called for further cuts in corporate tax rates, as well as a permanent extension of his existing tax cuts. Those tensions played out during the 2017 tax debates, when Republicans struggled to finance a more modest increase in the child tax credit without compromising on the economy-focused cuts.

Vance himself suggested that it would be difficult to keep his promise, even as he offered it.

“You obviously have to work with Congress to see to what extent this is possible and feasible,” Vance told CBS about his idea of ​​a $5,000 child tax credit.

Harris’ economic plan also entered more politically popular but economically riskier territory by proposing a ban on gouging in grocery stores. That idea drew particularly fierce criticism from Republicans, and Jason Furman, a former economic adviser to former President Barack Obama, expressed doubts about its feasibility.

More than any other part of the vice president’s economic program, her plea for the child tax credit underscores the battle that will be fought on Capitol Hill next year: the expiring provisions of the Trump-era tax law that Republicans pushed through in 2017.

“I think this helps set the stage by showing that the vice president’s priority as president will be to continue tax relief for low- to middle-income families,” David Kamin, a former economic adviser to President Biden, told Semafor. “These are very different priorities than what Donald Trump has articulated so far.”

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