Election 2024: Where every presidential candidate stands on the child tax credit

Plans to expand the child tax credit have become a key talking point among both Democrats and Republicans in Washington, D.C., in recent years, and now these proposals are coming back into the spotlight in the 2024 presidential campaign.

Vice President Kamala Harris, the Democratic nominee, first spoke about her vision for the tax break in an economic policy plan released just before the Democratic National Convention, promising a credit that would provide significantly more for families with newborns. Also an important part of Harris’ plan is restoring the expanded child tax credit that was part of the 2021 American Rescue Plan. She explained her goals during her debate with former President Donald Trump.

“I have a plan,” Harris said during the debate with Trump. “$6,000 for young families during your child’s first year of life. To help you during the most critical period of your child’s development.”

Trump and his running mate, Senator JD Vance, have similar hopes for expanding the credit, although a recent New York Times report highlights the discrepancy between their views and those of Harris.

Studies suggest that the temporary credit increase in 2021 had a significant impact on child poverty. Columbia University’s Center on Poverty and Social Policy found that the payments reduced monthly rates of child poverty by nearly 30%, with the payments reaching around 61 million children.

Read on to find out how much Harris hopes to increase the child tax credit and how it compares to her Republican opponents’ ideas. For more information about voting, here’s how to find out if you’re registered to vote.

What is the child tax credit?

The child tax credit provides parents with a tax break for any child under age 17 that they claim as a dependent. First introduced in 1997, the credit currently offers $2,000 per child, with only $1,600 of that amount being refundable, meaning you can get that amount even if you don’t owe that much in taxes. The remaining $400 is non-refundable and therefore can only be used to reduce your tax bill.

In 2021, President Joe Biden’s American Rescue Plan was passed and brought with it significant increases in the child tax allowance. Under the law, the credit was expanded to pay $3,600 per child under age 6 and $3,000 per child ages 6 to 17. The loan was also fully repayable and partially payable as a monthly benefit.

What will happen to the child tax allowance after 2021?

After 2021, Congress did not extend the temporary tax break and the child tax credit returned to its previous level. In 2025 it is expected to fall again to $1,000 per child.

Efforts to expand the credit since 2021 failed, including an Aug. 1 Senate vote that failed by a vote of 48-44 with all but three Republicans voting against it.

What is Harris’ plan for expanding the child tax credit?

“We know that young families need support raising their children,” Harris said during Tuesday night’s debate. “And I plan to extend a tax cut for these families.”

Shortly before last month’s debate, the Harris campaign unveiled an official platform page on its official website titled “A New Way Forward,” which included a section about the vice president’s plan to “cut taxes for middle-class families.” The campaign highlighted Harris’ goal of expanding the child tax credit up to $6,000 for families with a newborn under one year old. While the platform did not delve further into the plan, Harris has spoken in the past about restoring the credit to 2021 levels for all other non-newborn children.

Under this expansion in 2021, parents would be able to apply for a credit of $3,000 for children ages 6 and older and $3,600 for children ages 2 to 5. It would further increase the newborn credit amount to $6,000. The 2021 expansion eliminated work and income requirements, allowing eligible parents to receive the full credit regardless of income.

“[Harris and her running mate Gov. Tim Walz] will also expand the child tax credit to provide a $6,000 tax break to families with newborn children,” the page reads. “They believe that no child in America should live in poverty, and these policies would have historic implications.”

Harris said she also plans to reinstate the Earned Income Tax Credit (EITC) for single and joint filers who do not report children on their tax return. The EITC is a refundable tax credit for low- and moderate-income workers.

Harris had previously proposed covering the costs of that expansion and other parts of her economic plan by increasing taxes on corporations and the wealthy. However, as the Committee for a Responsible Federal Budget noted, these proposed tax increases have not yet been fleshed out by the campaign.

What have Republicans proposed for the child tax credit?

Vance said in an Aug. 11 interview with CBS News that he would work to increase the loan. Trump’s official “Issues” page doesn’t specifically address the child tax credit and only suggests cutting taxes across the board in one section.

“I would like to see a child tax credit of $5,000 per child,” Vance said. “But of course you have to work with Congress to see how possible and feasible that is.”

The child tax credit was increased from $1,000 to $2,000 in 2017 when Trump signed the Tax Cuts and Jobs Act, which expires in 2025. His 2024 campaign said in comments to CNBC that Trump “will consider a significant expansion of the child tax.” Credit,” but did not elaborate on his plans. A recent New York Times article about the fate of the child tax credit said Trump likes to boast that he “doubled” the tax credit during his time in office While the tax break was not a credit that anyone could claim, it did not apply to the poorest 25 percent of families who earned too little to report taxes.

For more on the credit’s history, see CNET’s previous coverage of taxpayer eligibility and how it can be affected by shared custody arrangements.