Vice President Kamala Harris is set to propose a new plan to cut taxes for middle-class and lower-income Americans as part of her economic policy rollout. The plan aims to offer tax relief for over 100 million Americans by reviving or extending temporary measures previously enacted by President Joe Biden and congressional Democrats. Specifically, Harris’s proposal will restore and make permanent the expansion of the child tax credit introduced in the American Rescue Plan, increasing it to $3,600 from $2,000. Additionally, a new child tax credit of up to $6,000 for families with newborns will be introduced to help cover expenses during the early stages of a child’s life.
Along with the child tax credits, Harris’ economic policy will also expand the earned income tax credit (EITC) to offer frontline workers without dependent children a tax reduction of up to $1,500. The proposal aims to provide additional financial support to lower-income workers, building upon the enhancements made through the American Rescue Plan. Furthermore, Harris plans to extend the Affordable Care Act premium subsidies that are currently set to expire at the end of 2025, which has helped increase sign-ups for Obamacare coverage to record levels.
Despite the detailed tax cuts proposed by Vice President Harris, the plan does not specify how long these costly provisions will be in effect. The broader economic policy rollout is expected to include a four-year plan to lower housing costs, including $25,000 in down payment assistance for first-time homeowners and incentives to spur the construction of new housing. Harris is also anticipated to call for a federal ban on price gouging to reduce grocery and everyday costs, addressing additional concerns beyond tax relief.
The introduction of Harris’s tax cuts proposal comes amidst continuous attacks from the Trump campaign, particularly from the GOP vice presidential nominee JD Vance, who is advocating for an increase in the child tax credit to $5,000 per child. The Harris campaign has criticized Trump’s economic agenda, highlighting the disparity in tax breaks that benefit billionaires and large corporations while neglecting lower-income individuals. They argue that Trump’s plan would provide billionaires with a $3.5 million tax break each year, benefitting the ultra-wealthy at the expense of those in need of financial assistance.
In light of the ongoing criticisms and attacks from the Trump campaign, Harris aims to draw a clear distinction between her proposed economic policies and those of the former president. By focusing on tax relief for middle-class and lower-income Americans, expanding social welfare programs such as the child tax credit and EITC, and extending healthcare subsidies, Harris seeks to demonstrate her commitment to supporting working families. The specific details of her economic policy plan, including the duration of the proposed tax cuts and other initiatives, are set to be formally unveiled during a speech in Raleigh, North Carolina.
