Child Tax Credit Expansion at Heart of 2024 Election Debate

Child Tax Credit Expansion at Heart of 2024 Election Debate \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The child tax credit, an increasingly pivotal issue in the 2024 election, is under debate as candidates outline their visions for expanding benefits. Kamala Harris proposes monthly payments for all families, including those with no income, while Donald Trump’s team suggests increasing the credit but emphasizes work requirements. The outcome could impact millions, as child poverty and living costs remain high in the U.S.

Election 2024: Child Tax Credit Takes Center Stage in Presidential Debate

• High Stakes for Families: Expanded child tax credit could help reduce poverty and provide stability for low-income families.
• Harris Proposes Bold Expansion: Harris’s plan would provide $6,000 per child for newborns and monthly payments without income restrictions.
• Republican Approach: Trump supports increasing the tax credit but remains cautious about extending benefits to non-working parents.
• Ongoing Need: With child poverty high in the U.S., both parties see expanding the child tax credit as essential, though they differ on who should qualify.

Deep Look

For the first time, the child tax credit has emerged as a pivotal issue in a U.S. presidential election, as candidates from both major parties debate how to use it to lift children and families out of poverty. In 2021, child poverty rates dropped significantly when President Joe Biden’s administration temporarily expanded the child tax credit, making it accessible to low-income families who had previously been ineligible. However, the expansion lapsed after a year when Congress opted not to renew it, reigniting a debate about the future of the credit.

Both Democratic and Republican candidates have expressed support for enhancing the credit, though they differ widely on the details of who should benefit. As Vice President Kamala Harris campaigns for the presidency, she has placed a substantial child tax credit expansion at the core of her economic policy platform, seeking to provide monthly payments to parents regardless of income. Her vision includes offering $6,000 annually for newborns and $3,600 for each child thereafter, with funds delivered in monthly installments rather than as an annual refund. Harris has proposed funding the expansion by raising taxes on corporations and the wealthiest Americans, including phasing out tax breaks introduced under Trump’s 2017 tax reforms.

Republican candidates, while supporting the idea of increasing the credit, remain wary of extending the benefit to parents who are not working. During his first term, Donald Trump doubled the credit from $1,000 to $2,000 and raised the income cap, allowing families with incomes of up to $400,000 to qualify. His team has not specified how much he would increase the credit if re-elected, though his running mate, Ohio Senator JD Vance, floated the idea of a $5,000 credit to allow more parents to stay home with their children. Yet some within the Republican Party, including Senate Minority Leader Mitch McConnell, have voiced concerns that the credit may encourage people to leave the workforce if they’re not required to work to qualify.

Harris’s approach contrasts sharply, positioning the expanded child tax credit as a transformative social program intended to provide relief to all families, including those with no earned income. She argues that the credit should be part of a more comprehensive social safety net that supports families in need. Harris’s running mate, Minnesota Governor Tim Walz, brings experience with child tax credits, having championed similar measures in his state.

Child Poverty in the U.S. and the Cost of Raising a Family

The stakes of this debate are high, as child poverty remains a persistent issue in the U.S., especially among children under age five, who face higher risks of poverty and housing instability. Today, one in six children in the U.S. lives below the federal poverty line. Rising costs for food, housing, and child care have only intensified the economic pressures on families, making the need for effective solutions more urgent.

In 2021, Biden’s child tax credit expansion, part of the American Rescue Plan, increased the credit to $3,600 per child under six and $3,000 for children aged six to 17, while removing income-based restrictions. This increase had a significant impact, cutting child poverty rates nearly in half according to one measure. But those gains were short-lived as the expansion expired, returning the credit to its pre-expansion levels.

Christy Gleason of Save the Children emphasizes that expanding the credit could be the most effective way to tackle child poverty. “Expanding the child tax credit is the single most effective option on the table for reducing child poverty in America,” Gleason noted, citing widespread public demand for such measures.

Currently, families can claim a $2,000 credit for each child under 17, though the benefit is reduced for households paying less than $2,000 in taxes, leaving many low-income and non-working families ineligible. For parents like 25-year-old Kandice Beckford, who had to quit her job as a medical assistant due to severe pregnancy complications, this system has left her without any child tax benefits. After giving birth in April, Beckford faced ongoing housing insecurity, often relying on friends and social service agencies for temporary shelter. “I’m a godly woman, so I tried to leave most of it in God’s hands,” she shared. Despite her struggles, Beckford holds hope for a more stable future for her daughter, Inari.

Harris’s proposal, which would extend the credit to all families with citizen children, regardless of income, aims to reach those who fall through the cracks. “I want [Inari] to have a stable life,” Beckford said, expressing a common desire among parents who lack reliable financial support. Many parents in similar situations have called for reforms that would ensure equitable access to financial relief for families.

Looking Ahead: Competing Visions of Economic Support for Families

Harris’s proposal would provide every qualifying family with a monthly allowance, addressing immediate needs and helping families budget throughout the year. Her campaign has argued that this approach would reduce financial instability, allowing families to plan for essentials like rent, food, and child care. According to her team, raising taxes on the wealthiest Americans and allowing certain tax cuts from the Trump era to expire would provide sufficient revenue to fund the expanded credit.

On the Republican side, Vance’s suggestion of a $5,000 credit reflects a more conservative stance, balancing an increase in support for families with an emphasis on work incentives. While some Republicans support a more generous credit, many share concerns that providing the benefit without income requirements could lead to dependency on government aid. Mitch McConnell, opposing a recent attempt to pass a more comprehensive child tax credit, referred to it as “cash welfare” rather than targeted relief for working families.

As the cost of raising children continues to climb, both parties recognize the importance of a robust child tax credit, though their methods diverge. Democrats advocate for a substantial social safety net that would provide relief to all families, including non-working parents, while Republicans are inclined to incentivize work as a condition for receiving benefits. The outcome of this debate will likely shape the financial landscape for millions of families struggling to meet the rising costs of food, housing, and child care.

If Congress does not act to renew or expand the child tax credit, the benefit is set to decrease to $1,000 per child starting next year. The upcoming election, along with new legislative proposals, could be pivotal for the future of the credit. Advocates like Gleason remain hopeful, stating that families and voters are demanding action to support children’s welfare in a time of economic strain.

For now, families like Beckford’s are relying on temporary shelter, local support networks, and faith to make ends meet. “I really want the best for [my daughter],” Beckford said, describing her dreams for a brighter future for her child. With the child tax credit debate gaining prominence, there may be new hope on the horizon for American families struggling to provide a stable foundation for their children.

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