Since Vice President Kamala Harris became the presumptive Democratic nominee for the 2024 presidential election, there is interest in how her potential administration might handle tax policy—particularly aspects impacting families and children. One area receiving attention is the child tax credit (CTC), an important financial benefit for many families. For the 2024 tax year, the CTC remains at $2,000 per qualifying child. The refundable portion of the credit has increased to $1,700 per child, up from $1,600 last year.
Vice President JD Vance (R-Ohio) said in an interview that Vice President Harris opposes the child tax credit. That claim, shown to be false, came after Vance faced criticism for referring to women without children as “childless cat ladies.” At an IRS event, Treasury Secretary Janet Yellen reportedly countered, saying, “Vice President Harris has indicated her support for avoiding tax increases for middle-income families. So I believe that’s a principle that she would adhere to.”
It’s important to note that specifics of Kamala Harris’ tax policy platform for her 2024 presidential campaign still need to be outlined. Harris has indicated, as Biden has, that she will not increase taxes on people earning less than $400,000 a year.
In the meantime, the vice president’s past proposals and public statements could hint at potential future priorities. For example, Harris could focus on expanding the CTC and providing financial relief to families with middle and lower incomes. Here’s more of what we know.
Child tax credit expansion?
During the pandemic, the American Rescue Plan significantly expanded the child tax credit, increasing the maximum credit to $3,600 per child and providing monthly payments to many families. Data show the expansion helped dramatically reduce child poverty rates. However, with the end of pandemic relief measures, child poverty rates unfortunately increased. However, as Kiplinger reported, the U.S. House of Representatives passed a bipartisan tax bill early this year, including provisions to expand the CTC. The bill would increase the maximum refundable amount per child and adjust the credit for inflation in subsequent years.
Despite its success in the House, the tax bill has faced significant challenges in the U.S. Senate. The legislation remains stalled, and several factors, including election-year politics, timing constraints, and competing legislative priorities, contribute to its uncertain future. Many believe the bill is unlikely to pass before the upcoming election.
Vice President Harris has advocated for supporting middle-class families. So, she could likely push for a permanent expansion of the CTC.
LIFT Act for middle-class families
Harris’ signature tax proposal from her time as a senator and during her 2020 presidential campaign was the LIFT (Livable Incomes for Families Today), the Middle Class Act. That proposed up to $6,000 annually in refundable tax credits for families with lower and middle incomes. While not specifically a child tax credit, the LIFT Act reflected Harris’ broader approach to providing financial relief to families. If she revives or revises this proposal, it could complement an expanded CTC, offering more support to families.
Potential differences from Biden
Both VP Harris and President Biden have supported increasing the child tax credit. Biden has focused on making the temporary pandemic-era expansions permanent. However, Vice President Harris might push for higher credit amounts or broader eligibility criteria.
Another issue the next president would need to address is the impending expiration of provisions from the 2017 Tax Cuts and Jobs Act (TCJA). These provisions expire after 2025 and are expected to impact federal income tax brackets and the standard deduction. If Congress doesn’t act, some families could see their tax burdens rise—whoever wins the White House will have to navigate these expirations. Harris could advocate for extending tax breaks for families with lower and middle incomes while allowing cuts for higher earners to lapse.
It’s important to note that we don’t yet have details on Vice President Harris’ tax policies. However, families could see financial relief if Harris continues championing the expanded child tax credit and the LIFT Act. Beyond potential more immediate financial benefits, these or similar policies could contribute to reducing child poverty and improving the overall well-being of children and families. As the campaign progresses, specific proposals will emerge, offering a clearer picture of how a possible Harris administration might reshape U.S. tax policy for families.
