20/08/2024 | News release | Distributed by Public on 21/08/2024 03:11
To the Point provides insights from AU faculty experts on timely questions covering current events, politics, business, culture, science, health, sports, and more. Each week we ask one professor just one critical question about what's on our minds.
In an election year, campaign promises abound. This year, so far, one of the most popular promises is tax credits for families.
Last week, when Kamala Harris unveiled her Economic Plan, she called for an expanded child tax credit (CTC) from $2,000 per child to $3,600, plus an additional $6,000 tax credit for families during the first year of a child's life. Her proposal came days after J.D. Vance proposed expanding the child tax credit to $5,000 per child per family.
So, why are our candidates focused on tax breaks for children? Is it a good thing for families? And is it a good thing for the economy?
For some insight into the economic and societal impacts of these popular tax cut proposals, we turned to Economics Professor Mary Eschelbach Hansen. As Co-Director for Administration for American University's Institute for Macroeconomic & Policy Analysis, Hansen's research focuses on US social policy and has been published widely in the fields of economic history and child welfare policy.
The child tax credit is a tax benefit that helps middle- and lower-income working families with children. It increases families' economic security by reducing the amount of taxes that eligible families owe to the government. The amount of the credit is based on the taxpayer's income, marital status, and number of children.