Vice President Kamala Harris has made it clear that building up the middle class will be a top priority during her presidency. She believes that a strong middle class is essential for a strong America and that families need relief from the high cost of living to not just get by but to get ahead. This vision is ambitious and aims to address the economic challenges facing many Americans.
One of Harris’s signature proposals is the LIFT the Middle Class Act, which would provide an annual tax credit of up to $3,000 per person (or $6,000 per couple) for lower- and middle-income workers. This tax credit would offer significant relief, especially as the cost of living continues to rise, impacting working-class Americans. However, implementing such a tax credit would come at a significant cost, according to estimates from the Tax Policy Center.
While the LIFT Act could benefit renters the most, there are concerns about the impact of such policies on the rental market. Economists have found that rent-control policies could reduce the supply of rental units, leading to tighter rental markets. This could have negative side effects, such as landlords taking their properties off the rental market. Additionally, funding such a tax credit could be challenging amid growing concerns over the federal budget deficit.
The temporary expansion of the child tax credit during the Covid-19 pandemic has become a bigger priority, with experts highlighting its impact on reducing child poverty. The American Rescue Plan boosted the child tax credit, leading to a historic low in child poverty rates. However, as pandemic relief measures expire, there are concerns about the future of the child tax credit and its impact on families.
As Harris considers her economic policies moving forward, she faces a decision on whether to focus on renewing calls for the LIFT Act or prioritizing the child tax credit expansion. Both initiatives aim to support lower- and middle-income families, but they have different designs and impacts. It remains to be seen how Harris will navigate these policy considerations and address the economic challenges facing Americans.
Vice President Kamala Harris’s vision for strengthening the middle class through economic policies like the LIFT Act and child tax credit expansion is ambitious but faces significant challenges. As she navigates the complexities of implementing these initiatives, she must carefully consider the implications for the economy and for the American people. Her commitment to supporting lower- and middle-income families is commendable, but the success of her economic policies will ultimately depend on careful planning and execution.