According to Marca , The future of the Child Tax Credit (CTC) has become a central topic of discussion following the 2024 presidential election, with stark differences emerging between the plans proposed by Democrats and Republicans.
During her campaign, Vice President Kamala Harris, representing the Democratic Party, made expanding the Child Tax Credit a cornerstone of her economic platform. Now, with Donald Trump poised to return to the White House as president-elect, the future of the CTC is largely in his hands. While Trump and his running mate, Senator JD Vance, have expressed support for expanding the credit, their proposals remain less defined compared to Harris’s more detailed vision.
According to a recent report from The New York Times, there are notable contrasts in the approach each party has taken toward the CTC. While Harris’s expansion would likely build on the successes of the 2021 increase in child tax payments, Trump’s position remains more general, with some proposals suggesting significant changes, though specifics are unclear.
Impact of the 2021 Child Tax Credit Increase
The 2021 temporary expansion of the CTC, part of President Biden’s American Rescue Plan, made a remarkable impact on reducing child poverty. Research from the Center on Poverty and Social Policy at Columbia University showed that the enhanced payments helped reduce monthly child poverty rates by nearly 30%, reaching around 61 million children.
Previously, the Child Tax Credit provided $2,000 per child, of which $1,600 was refundable, meaning families could receive that amount even if they owed no taxes. The remaining $400 was non-refundable, serving only to reduce tax liability.
The 2021 Expansion and Its Aftermath
The American Rescue Plan expanded the CTC to $3,600 per child under age 6 and $3,000 per child aged 6 to 17, fully refundable, with the option for families to receive monthly payments. However, after 2021, Congress did not renew the expansion, and the credit reverted to its previous structure. Unless legislation is passed, the CTC will drop again to $1,000 per child in 2025.
Efforts to extend or expand the credit have since failed, including a Senate vote in August 2023 that saw all but three Republicans voting against an expansion.
Trump and Vance’s Position on Expanding the CTC
While Trump’s official 2024 campaign page does not directly address the Child Tax Credit, he has previously indicated an openness to considering an expansion. In an interview, Senator JD Vance expressed support for raising the credit, saying he would “love to see a $5,000 per child tax credit” but emphasized that any such change would require cooperation with Congress.
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Trump’s previous administration saw the CTC increase from $1,000 to $2,000 per child as part of the Tax Cuts and Jobs Act of 2017, though this provision expires in 2025. In a 2024 campaign statement, Trump suggested a “significant expansion” of the CTC but offered few specifics, noting that any such measures would need to be negotiated with Congress.
Looking Ahead
As we approach the next legislative session, the future of the Child Tax Credit remains uncertain. Democrats, led by Harris, continue to push for more robust expansions, while Republicans, including Trump and Vance, are also considering reforms—but with a focus on tax cuts and a broader tax overhaul. The outcome will depend on negotiations between the executive branch and Congress, with differing priorities shaping the debate over the best approach to supporting families and reducing poverty.
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