Ever since Vice President Kamala Harris became the Democratic nominee for the 2024 presidential election, there has been interest in how her potential administration might handle tax policy — particularly aspects impacting families and children. The addition of Minnesota Gov. Tim Walz as Harris' running mate has bolstered speculation that the two will focus on policies to support middle-class families.
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.
Due to a successful temporary expansion of the CTC during the pandemic, some lawmakers have pushed to create a new child tax credit. Though recent attempts to pass legislation that would improve the CTC have stalled in Congress.
Now that Harris has unveiled an economic plan designed to provide tax relief for those in the U.S. with lower and middle incomes, we have some insight into tax breaks she and Walz will champion if elected.
Here's more of what you need to know.
Kamala Harris 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.
However, Vice President Harris is calling for an expansion of the child tax credit. Her proposal would reinstate and enhance the credit implemented during the pandemic and increase it from $2,000 to up to $3,600 per qualifying child.
Harris would go a step further and work with Congress to make the CTC enhancement permanent.
"We know this works and has a direct impact on so many issues," including child poverty, Harris told supporters during a speech in North Carolina on August 16.
It's worth noting that as governor of Minnesota, Tim Walz signed into law one of the most generous state-level child tax credits in the U.S. As Kiplinger reported, the Minnesota child tax credit (implemented last year) provides up to $1,750 per child for eligible families, with no limit on the number of children that can be claimed.
The Minnesota CTC is fully refundable, meaning families can receive the full amount even if it exceeds their tax liability.
Related: Minnesota Child Tax Credit Eligibility and Amounts
$6,000 child tax credit?
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 proposal reflected Harris' broader approach to providing financial relief to families.
Harris is revising that idea to push for up to $6,000 in tax credits in the first year of a child's life. This could complement an expanded CTC and offer additional tax relief to families since as Harris told supporters costs can add up for essentials like diapers and baby supplies.
Potential differences from Biden
Both VP Harris and President Biden have supported increasing the child tax credit.
- Biden has also focused on making the temporary pandemic-era expansions permanent.
- Vice President Harris will likely push for higher credit amounts or broader eligibility criteria.
- Harris is also calling for an increased federal Earned Income Tax Credit (EITC).
It’s important to note that specifics of Kamala Harris' tax policy platform for her 2024 presidential campaign still need to be fully outlined.
Harris has indicated, as Biden had, that she will not increase taxes on people earning less than $400,000 a year.
Note: Another issue the next president will 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.
Vance and the child tax credit
The federal child tax credit has also received attention lately on both sides of the presidential campaign.
Recently, Republican vice presidential nominee Sen. 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.”
Later, Vance floated the idea of a $5,000 per dependent child tax credit, more than 2.5 times the current amount. However, some in Congress have questioned the legitimacy of the proposal.
New child tax credit: Bottom line
It’s important to note that we don’t yet have all of the details on Vice President Harris’ proposed tax policies. However, families could see financial relief if Harris continues championing the expanded child tax credit. 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, more specific proposals will emerge, offering a clearer picture of how a possible Harris-Walz administration might reshape U.S. tax policy for families. So, stay tuned.
