{"id":6471,"date":"2024-10-23T07:43:54","date_gmt":"2024-10-23T07:43:54","guid":{"rendered":"https:\/\/finderica.com\/key-harris-tax-credits-would-largely-benefit-low-and-middle-income-households\/"},"modified":"2024-10-23T07:43:54","modified_gmt":"2024-10-23T07:43:54","slug":"key-harris-tax-credits-would-largely-benefit-low-and-middle-income-households","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=6471","title":{"rendered":"Key Harris Tax Credits Would Largely Benefit Low- And Middle-Income Households"},"content":{"rendered":"\n
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KALAMAZOO, MICHIGAN – JULY 17: US Vice President Kamala Harris speaks at a moderated conversation … [+]<\/span> (Photo by Chris duMond\/Getty Images)<\/span><\/p>\n

<\/fbs-accordion>Getty Images<\/small><\/figcaption><\/figure>\n

Three tax credits for families with children, low-income workers, and first-time homebuyers proposed by Democratic presidential candidate Kamala Harris would reduce federal tax revenues by $2 trillion over the next decade. But, as she has claimed, they\u2019d largely benefit low- and middle-income households, according to a new Tax Policy Center analysis<\/a>.<\/p>\n

TPC projected that more than 70 percent of households making about $113,000 or less (the lowest-income half) would benefit from at least one of these three tax breaks. Overall, they\u2019d lower 2025 household taxes by an average of $750, or about 0.7 percent of after-tax income. About 28 percent of all <\/em>households would benefit from at least one of the three subsidies Harris proposed<\/a> and TPC modeled.<\/p>\n

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Effects of tax credits proposed by Vice President Kamala Harris<\/p>\n

<\/fbs-accordion>Tax Policy Center<\/small><\/figcaption><\/figure>\n

What TPC Modeled<\/strong><\/p>\n

TPC included Harris\u2019s plan to make the Child Tax Credit (CTC<\/a>) available to more very low-income families and increase the credit amount from $2,000 to up to $6,000 per child, depending on their age; her proposed expansion of the Earned Income Tax Credit (EITC<\/a>), especially for workers who do not live with their children; and a refundable tax credit of up to $25,000 for first-time homebuyers.<\/p>\n

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Since Harris has not described details of her homebuyer subsidy, TPC modeled a stylized tax credit. She could structure that assistance as a cash grant, though the Biden Administration\u2019s 2025 budget<\/a> uses a tax credit for a similar proposal.<\/p>\n

TPC\u2019s analysis does not include other Harris tax cut proposals such as subsidies for home builders or tax increases<\/a> such as higher tax rates on capital gains, a minimum tax on wealthy taxpayers, and higher corporate tax rates. TPC previously analyzed plans to exempt tipped income f<\/a>rom federal tax, ideas that have been proposed both by Harris and her GOP challenger Donald Trump.<\/p>\n

The Cost<\/strong><\/p>\n

By far the most costly of the three proposals would be Harris\u2019s proposed expansion of the Child Tax Credit (CTC).<\/a> It would reduce tax revenues by nearly $1.6 trillion between 2025 and 2034, compared to current law, TPC estimated<\/a>.<\/p>\n

Her EITC expansion<\/a> would cost about $140 billion and her homebuyer tax credit would reduce federal revenues by about $300 billion. The homebuyer\u2019s credit could be much more expensive if it, and other housing-related subsidies she proposed, encourage more people to buy homes.<\/p>\n

Who Benefits<\/strong><\/p>\n

As a share of income, households making about $33,000 or less (the lowest income 20 percent) would be the biggest winners. Their after-tax incomes would rise by 3.6 percent, or almost $700 on average in 2025.<\/p>\n

While high-income households would receive some benefit, it would be very small. The highest-income 20 percent of households would get an average tax cut of only about 0.1 percent, or about $350. And the top 1 percent would get no tax cut at all, on average.<\/p>\n

Because Harris\u2019s tax cuts are so highly targeted, there are big differences even within income groups.<\/p>\n

For example, about 36 percent of all of the lowest-income households would get a tax cut, averaging about $700. But among those households<\/a> with children, more than three-quarters would get a tax cut, averaging about $2,800. By contrast, since older adults are unlikely to have young children or to be first-time homebuyers, many fewer would benefit. For example, only about 7 percent of low-income older adults would get a tax cut<\/a>, averaging only about $150.<\/p>\n

Overall, Harris\u2019s troika of low- and middle-income tax cuts would benefit only a bit more than one-quarter of households. But those who do qualify would enjoy generous tax breaks. That would be especially true of very low-income parents.<\/p>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

KALAMAZOO, MICHIGAN – JULY 17: US Vice President Kamala Harris speaks at a moderated conversation … [+] (Photo by Chris duMond\/Getty Images) Getty Images Three tax credits for families with children, low-income workers, and first-time homebuyers proposed by Democratic presidential candidate Kamala Harris would reduce federal tax revenues by $2 trillion over the next decade.<\/p>\n","protected":false},"author":1,"featured_media":6472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[291,855,562,1210,96,1208,1209,97],"class_list":{"0":"post-6471","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-benefit","9":"tag-credits","10":"tag-harris","11":"tag-households","12":"tag-key","13":"tag-largely","14":"tag-middleincome","15":"tag-tax"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/6471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6471"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/6471\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/6472"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}