As part of her economic agenda, on Friday, August 16, the campaign team of Kamala Harris, the vice president of the United States and Democratic presidential candidate, announced the plan to reinstate and expand the child tax credit. Harris will detail her economic agenda in a policy speech in North Carolina on that day.
Harris will uphold President Biden’s promise not to increase taxes on individuals with annual incomes below $400,000. Additionally, the campaign team outlined her proposed ways to cut taxes for middle-class families.
The main measure is to reinstate the expanded child tax credit included in the American Rescue Plan, which was passed in 2021 but the tax credit policy expired that year. Harris’ campaign aides stated that the vice president will push to reinstate this policy, providing up to $3,600 in tax credits for each child in many families.
The campaign team also mentioned that Harris will propose providing up to $6,000 in tax relief for low to middle-income families in the year following the birth of a child. In addition to expanding the child tax credit, the vice president will also advocate for offering up to $1,500 in income tax relief for individuals working low-income jobs who do not have children. These tax policies will be central to Harris’ economic agenda.
Her campaign team detailed other components of the plan this week, including advocating for the federal government to crack down on price gouging and working to increase housing supply.
The goal is for Harris to differentiate herself from her Republican competitors, particularly former President Trump, on tariffs and taxes. Her agenda may face resistance from businesses and Congress, as when President Biden proposed similar measures, he faced opposition from both sectors.
Harris’ economic agenda aligns closely with Biden’s, but introduces some new incentives for homebuyers and aims to control rising prices. Democrats aim to attract the working class, who are concerned about higher costs and economic prospects, and often view Republicans as better economic managers.
A report released by the US Department of Labor this week showed that inflation has dropped below 3% for the first time in nearly three and a half years, but grocery and consumer goods prices remain significantly higher than pre-pandemic levels.
Not all aspects of Harris’ economic agenda will be included in Friday’s speech. Her aides and advisors stated that the campaign team hopes to avoid causing division among voters and inviting attacks from business groups due to issues with details, so they will strategically keep policies vague in areas such as energy.
Meanwhile, the Trump campaign team has also been brewing new tax-cut measures for middle-class families. Trump first pledged in June to eliminate taxes on tips for employees in the hospitality industry. Last week in Las Vegas, Harris made a similar promise to end tip taxation.
(This article references reports from “The Hill” and Reuters.)