HELPING HAND
Americans may see child tax credits return worth $3,600 under new proposal – plus $6,000 bonus for newborns
The veep unveiled populist plans - if she can take the reins next year
AMERICANS could get new tax credits under a proposal heating up the presidential race.
Vice President Kamala Harris revealed some of her economic plans on Friday, aiming to tackle the high cost of living.
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Speaking in Raleigh, North Carolina, she said her administration would cut taxes for more than 100 million people.
She outlined three major policy goals. First, expanding the earned income tax credit and the child tax credit, then offering $25,000 in down payment assistance for first-time homebuyers, and finally, the construction of 3 million new housing units.
The tax proposals could mean the return of a $3,600 benefit for parents, and a $6,000 bonus for having a newborn.
Harris also took aim at “opportunistic companies” for raising prices on basic goods, trying to take some of the blame for inflation off the Biden administration.
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“Together, we will build what I call an ‘opportunity economy,’” she said, promising to lay out more details of her economic policy in the coming weeks.
She blamed inflation partly on corporate decisions — though many economists say “price gouging” is not a major factor contributing to the spike in prices.
She did not specify which companies are to blame, but said the government should take action.
“I know most businesses are creating jobs, contributing to our economy, and playing by the rules. But some are not, and that’s just not right. And we need to take action when that is the case.”
VP Kamala Harris
TAX TIME
During the pandemic, the Biden administration's American Rescue Plan temporarily raised the child tax credit to $3,600 for those with a child under age 5, and $3,000 for those with older children.
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Harris wants to bring that credit back.
That's up to $2,000 more per child than the 2023 rate.
She also said she hopes to push for a $6,000 tax credit for those who have a newborn child.
The tax cuts would apply to low- and middle-income taxpayers, and have become popular across the political spectrum. On the other end of the campaign, Republican Vice Presidential candidate J.D. Vance recently embraced the policy.
However, tax changes need to go through Congress to become law.
The proposal would be sure to spark some criticism, as such a broad tax cut would increase the already-growing national debt.
HOUSING HELP
In her speech, Harris framed homeownership as a way to build intergenerational wealth for families.
To incentivize ownership, she said she supports government payments of up to $25,000 to help some with down payments on homes.
She also railed against corporate landlords, who she said collude to keep housing costs high.
On top of this, she promised to build 3 million housing units for renters and homebuyers, though it was not immediately clear how she would make this happen.
Nationwide, low supply of housing has driven up costs of rent and property.
INFLATION NATION
Harris' speech focused less heavily on the idea of corporate greed than had been expected by many pundits after some pushed back against a still-unclear plan to limit "price gouging" at the federal level.
Instead, she focused on more populist ideas of economic stimulus while trying to frame her opponent, former President Donald Trump, as wealthy and self-interested.
While inflation has come down significantly in the past two years, prices are still high — a political liability for Harris as a member of the current administration.
Experts have pointed to an array of issues contributing to inflation — which peaked at over 9 percent in the summer of 2022.
The pandemic, severe supply chain disruptions, and the Russian invasion of Ukraine all contributed to a spike in prices. The extent to which Trump and Biden's Covid-era economic stimulus packages contributed to inflation is debated.
While the cost of essentials went up, many corporations increased their profit margins.
That’s a point of frustration for some in the middle and working class — leading some Americans to believe that corporations began making too much money for an elite few shareholders while they struggled to pay for groceries.
Now, Harris is tapping into that frustration.
While many economists do not consider price gouging to be a key factor in rising costs, the plan may score political points with working class voters — a demographic Trump managed to partially pull away from the Democrats to secure victory in 2016.
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Harris’ push for more lower-income votes may already be working, according to recent polling.
Trump is also focusing on inflation while campaigning — shaking Tic Tacs and other props to illustrate “shrinkflation” and the crunch on American consumers.