Vice President Kamala Haris recently teased plans to cut taxes for parents that will expand on initiatives launched by the Biden administration.
One of Harris' proposals was an expanded child tax credit, which would give families with newborn children $6,000 in tax relief. Her proposal would improve on the Biden Administration's child tax credit initiative in 2021, which was hiked to $3,600 per child under age 5 and $3,000 for those older, under the American Rescue Plan.
Harris' plan will focus on providing tax relief for lower- and middle-income families with children in the first year of life. A campaign fact sheet noted that this period may be costly for families, especially those who have to forfeit pay to take time off work to care for newborns.
In addition, Harris proposed restoring the Biden administration's expanded child tax credit, which will provide up to $3,600 in tax relief for middle-class and "the most hard-pressed working families with children."
Furthermore, the campaign said Harris would expand on earned income tax credits for individuals and couples without children. This initiative would help save lower-income workers an average of $1,500.
Outside of Harris' economic plan, she has expressed support for paid leave in campaign remarks. However, it is unclear whether paid leaves will be added to her proposals.
Current State of Child Tax Credits
Currently, the government is providing a maximum of $2,000 in child tax credits to eligible households. However, that could drop to $1,000 once Trump's 2017 tax cuts expire after 2025 if Congress does not take action.
Biden's American Rescue Plan only temporarily increased the maximum child tax credit to either $3,000 or $3,600 in 2021. In that year, the child poverty rate fell to 5.2%, marking a historic low, per an analysis from Columbia University. The tax relief also helped families pay household bills and cover basic expenses such as groceries and utilities, according to Business Insider.
