Kamala Proposes CTC Change

The child tax credit or CTC is back in the news.

Around August 12, 2024 several media outlets reported about Senator JD Vance’s recent proposal to significantly boost the Child Tax Credit (CTC) to $5,000 per child. Now, if you’re keeping track, that’s a 150% increase from the current $2,000 credit. This idea, while promising a lot of relief for families, also raises some big questions about how it would be funded.

Sen. Vance, the Republican vice-presidential nominee, made his intentions clear during an appearance on CBS’s “Face the Nation.”

“I’d love to see a child tax credit that’s $5,000 per child,” Vance stated. He also adding that former President Trump has long supported expanding the CTC, and Vance thinks it should apply to all American families, regardless of income.

This proposal comes on the heels of a failed Senate bill that aimed to slightly expand the CTC, which didn’t pass. Supporters of the CTC expansion argue that it could provide much-needed assistance to low- and middle-income families struggling with the costs of raising children. But there’s a catch—such a significant increase could lead to a hefty bill for the federal government.

According to the Committee for a Responsible Federal Budget, this proposal could add a whopping $2 to $3 trillion in federal spending over the next decade. Marc Goldwein, the senior policy director at the Committee, pointed out that without specific details from Vance, it’s challenging to nail down the exact cost. One major factor is whether Vance envisions a fully refundable credit—meaning families would receive the entire $5,000 even if they don’t owe that much in taxes. If so, the cost could skyrocket even further.

Vance also hinted at eliminating income thresholds for the CTC, which currently phases out for single filers making over $200,000 and married couples earning more than $400,000. This would make the credit available to higher-income families as well, broadening its reach but also increasing the overall expense.

However, Vance’s stance is not without its critics. Senator Ron Wyden, a Democrat from Oregon and co-sponsor of the failed CTC expansion bill, criticized Vance.

Additionally, the left went nuts, claiming that Vance is only catering to Americans with children.

Well, Vance’s proposal must have been well received by America despite the media and the left dogging it because guess what? Kamala stole the proposal.

It is being reported by Axios that Kamala Harris has proposed to increase the CTC to $6,000 for families during the first years of the child’s life. Note that her plan is $1,000 more than Vance’s.

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