Amala Harris’ Child Tax Credit Plan Would Give Newborn Parents $6,000 What You Need to Know
The future of the child tax credit is in the spotlight as Vice President Kamala Harris, the Democratic presidential nominee, highlighted her plan to expand the tax credit to families with newborns during her debate with former President Donald Trump on Tuesday night.
“I have a plan,” Harris said during the debate “$6,000 for young families for the first year of your child’s life. To help you in that most critical phase of your child’s development.”
Harris first laid out her vision for the tax cut in an economic policy plan unveiled just before the Democratic National Convention. She promised a tax break that would significantly increase the benefits for families with newborns.
Plans to expand the credit have become a major talking point among Democrats in Washington, D.C., as well as Republicans, with Republican nominee and former President Donald Trump, as well as his running mate Sen. J.D. Vance, putting forward similar ideas. A key part of Harris’ plan is to restore the expanded child tax credit that was part of the American Rescue Act of 2021.
Studies show the temporary credit increase in 2021 had a significant impact on child poverty. Columbia University Center for Poverty and Social Policy found that the payments lowered the monthly rates of child poverty by almost 30%, with payments reaching approximately 61 million children.
Read on to find out how much Harris hopes to increase the child tax credit and how it compares to her Republican opponents’ ideas. For more on the election, here’s how to tell if you’re registered to vote.
What is child benefit?
The Child Tax Credit offers parents a tax credit for each child under the age of 17 that they claim as a dependent. First introduced in 1997, the credit currently offers $2,000 per child, of which only $1,600 is refundable, meaning you can receive that amount even if you don’t owe that much in taxes. The remaining $400 is nonrefundable, so it can only be used to reduce your tax burden.
In 2021, Chairman Joe Biden’s American Rescue Plan was passed, and brought significant increases to the child tax credit. Under the act, the tax credit was expanded to $3,600 per child under age 6 and $3,000 per child ages 6 to 17. The tax credit was also fully refundable and partially payable as a monthly benefit.
What happened to child benefits after 2021?
After 2021, Congress did not extend the temporary tax cut and the child tax credit returned to its old level. The plan is for it to drop back to $1,000 per child by 2025.
Attempts to expand credit since 2021 have failed to produce results, including the most recent a vote in the Senate on August 1 which failed by a vote of 48 to 44, with all but three Republicans voting against it.
What does Harris plan to do about expanding child benefits?
“We know that young families need support to raise their children,” Harris said during Tuesday night’s debate. “And I plan to extend a tax cut for those families.”
On the Monday before the debate, Harris’ campaign launched an official platform page on its official site, titled “A new way forward”, including a section on the vice president’s plan to “cut taxes for middle-class families.” In that section, the campaign noted Harris’ goal of expanding the child tax credit to $6,000 for families with a newborn under one year old. While the platform did not elaborate on the plan, Harris has spoken in the past about restoring the tax credit to its 2021 level for all other non-newborn children.
“[Harris and her running mate Tim Walz] will also expand the child tax credit to provide families with newborn children a $6,000 tax break,” the page reads. “They believe no child in America should live in poverty, and these actions would have a historic impact.”
Harris previously proposed covering the cost of this expansion and other parts of her economic plan by raising taxes on corporations and the wealthy. The Commission for a Responsible Federal Budget notedHowever, the campaign has not yet given concrete substance to the proposed tax increases.
What have Republicans proposed for child benefits?
JD Vance, the Republican senator from Ohio and Trump’s running mate, said in an interview with CBS News on August 11 that he would work to increase credit. Trump’s Official “Issues” Page child benefits are not specifically mentioned, but only one paragraph proposes to reduce taxes in general.
“I would like to see a child tax credit of $5,000 per child,” Vance said. “But of course you have to work with Congress to see how feasible and achievable that is.”
The child tax credit was increased from $1,000 to $2,000 in 2017 when Trump signed the Tax Cuts and Jobs Act, which expires in 2025. His 2024 campaign said in a response to CNBC that Trump “will consider a significant expansion of child benefits,” but he did not elaborate on his plans.
For more information on the history of the tax break, check out CNET’s previous coverage on its eligibility for taxpayers and how it can be affected by stock holding arrangements.
