Harris Proposes Major Tax Relief for Families Welcoming a New Baby
Harris Proposes Major Tax Relief for Families Welcoming a New Baby
Vice President Kamala Harris is set to introduce an ambitious economic plan aimed at easing the financial burden on American families by addressing key expenses such as housing, groceries, and child-rearing costs.
A central feature of the plan is a significant expansion of the child tax credit. Under Harris's proposal, low- and middle-income families could receive up to $6,000 for each new baby, alongside the restoration of the pandemic-era benefit that provided up to $3,600 per child. This move aligns with Republican proposals, including one from Vice Presidential candidate Sen. JD Vance, who has suggested a $5,000 child tax credit.
While President Joe Biden has faced challenges in gaining recognition for his economic policies, particularly in reducing prices, polls indicate that Harris fares better in voter confidence on economic issues. During a campaign stop in Las Vegas on August 10, Harris acknowledged the ongoing issue of high grocery prices, stating, "While our economy is doing well by many measures, prices for everyday things like groceries are still too high. You know it and I know it."
Harris's plan also targets housing affordability. In Raleigh, North Carolina, she will deliver her campaign's first major policy address, where she plans to propose tax incentives that could lead to the construction of 3 million new housing units within four years. This exceeds the Biden administration's current proposal of 2 million new and renovated homes. Harris's proposal includes unspecified tax breaks for homebuilders focusing on first-time buyers and affordable rentals, along with a $40 billion fund to support local governments in financing housing developments, doubling the Biden administration's $20 billion proposal.
Additionally, Harris will advocate for a $25,000 down payment assistance program for first-time homeowners, which could benefit over 4 million buyers. This plan is more generous than Biden's State of the Union proposal, which offered a $10,000 tax credit for first-time homebuyers.
On the corporate front, Harris will emphasize her commitment to challenging corporations that profit excessively from consumers. Drawing from her experience as California's attorney general, she will pledge to fight corporate price gouging, particularly by landlords and pharmaceutical companies. Harris plans to propose an extension of the $35 insulin price cap to all Americans, not just seniors, and a $2,000 cap on out-of-pocket prescription drug costs.
Harris's campaign also indicates she will support legislation restricting tax breaks for corporate investors purchasing homes and banning the use of algorithmic data by rental property owners to increase rent prices. Regarding grocery prices, Harris will advocate for a federal ban on price gouging in the food sector, with a particular focus on meat prices. She will argue that the concentrated meat processing industry is a significant factor driving up grocery costs and commit to more aggressive investigations and prosecutions of price-fixing in the meat supply chain.
The plan also proposes empowering the Federal Trade Commission and state attorneys general with the authority to investigate and penalize corporations that keep grocery prices high instead of passing savings to consumers. Additionally, Harris's administration would scrutinize mergers in the food sector to ensure they do not lead to higher grocery prices.
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