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Vice President Harris proposes increasing the child tax credit to up to ,000 per child
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Vice President Harris proposes increasing the child tax credit to up to $6,000 per child

The child tax credit has long been a topic of political debate on Capitol Hill. While there are proposals from both Republicans and Democrats to expand the tax credit, Vice President Kamala Harris is joining the call for a comprehensive change.

On Friday, her campaign released a series of economic proposals aimed at middle-class voters. One idea is increasing the child tax credit to $6,000.

Currently, households with incomes of $200,000 ($400,000 for couples) and children ages 16 or younger are generally eligible for a $2,000 credit, but only $1,600 of that amount is considered refundable.

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Harris’ plan calls for an increase in the child tax credit to $3,600 per child. For families with a newborn, the child tax credit would rise to $6,000.

Earlier this year, the House of Representatives passed a phased increase in 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 the 2023 tax year, $1,900 for 2024, and $2,000 for 2025.

The Senate considered the bill on August 1, but only two Republicans supported a procedural vote that would have brought the bill to a vote.

Previous efforts to increase the child allowance

In recent years, there has been discussion about providing additional funds to families through the child tax credit. In 2023, President Joe Biden proposed raising the child tax credit from $2,000 per child to $3,000 per child for children ages 6 and older 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 it expired despite Democrats’ efforts.

Expanded child tax credits and other government assistance programs during the Covid-19 pandemic have helped reduce child poverty by almost 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, when the child tax credit returned to its normal level, it kept 2.4 million people out of poverty. Essentially, the U.S. Census Bureau estimates that the child tax credit expansion kept nearly 3 million additional Americans out of poverty in 2021.

Republicans’ stance on the child tax credit

Former President Donald Trump’s Republican running mate, Senator JD Vance, said in an interview on CBS’s “Face the Nation” on Sunday that he supports an even higher child tax credit.

He proposed raising the child tax credit to $5,000 per child. Vance said a higher child tax credit is also a priority for Trump.

“The child tax credit has stalled thanks to the Biden administration because Harris failed to show basic leadership. Chuck Schumer couldn’t get it through the U.S. Senate, and we want more family-friendly policies,” Vance told CBS.

Vance was among eight senators who did not vote on the congressional measure to increase the child tax credit earlier this month.

Under then-President Trump, the child tax credit was increased from $1,000 per child per year to $2,000 per child per year after the Tax Cuts and Jobs Act was signed into law. The bill, which proposed a wide range of changes to U.S. tax law, passed the Senate on a GOP vote. Then-Senator Harris voted against the bill.

In 2025, the child tax credit is set to be reduced from $2,000 per child to $1,000 as the provision of the Tax Cuts and Jobs Act expires.

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