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There’s a reason voters are hearing more about the child tax credit during this presidential campaign, with both Republican and Democratic candidates voicing support for its expansion.
Giving families with children a break on their taxes is a popular and effective policy that reduces poverty and helps parents afford basic necessities such as groceries and child care. The child tax credit is currently capped at $2,000 a year per child and set to expire in 2025.
Vice President Kamala Harris wants to restore it to its pandemic-era level of up to $3,600 per child and add an additional $6,000 credit for families with newborns. Former President Donald Trump has offered only vague comments of support for the child tax credit, though his vice presidential running mate, Ohio Sen. JD Vance, said he wants to increase it to $5,000.
But we’re not putting much stock in pledges from Republicans to fight for working families. Vance, who has disingenuously tried to label Democrats “anti-family and anti-kid,” didn’t even show up to vote for a modest expansion of the child tax credit that his fellow Senate Republicans defeated Aug. 1. And Trump, whose tax policies while in office largely favored the wealthy, is a serial liar who will say almost anything to regain power.
That’s too bad. Because whoever controls the White House next year should follow through with a permanent expansion of a policy that’s proven to ease financial stress for families and lift children out of poverty.
The child tax credit was first enacted in 1997 under President Bill Clinton and has been expanded multiple times by both Democratic and Republican presidents. But the most dramatic improvement came under President Joe Biden with his signing of the 2021 American Rescue Plan. The law, which received no Republican votes, increased the child tax credit, made it fully refundable, paid it out in monthly deposits of up to $300 per child into families’ bank accounts and extended the full benefits to low-income children who had previously received less because their families earned too little.