Presidential Candidates’ Dueling Child Credit Expansions Explained

Presidential Candidates’ Dueling Child Credit Expansions Explained

The Trump-Vance and Harris-Walz presidential campaigns have each recently proposed large expansions to the child tax credit (CTC). Both proposals might be intended to appeal to similar voters, but they vary significantly regarding budgetary cost, distribution of benefits, and effect on work incentives.

Macroeconomics of the Child Tax Credit

Macroeconomics of the Child Tax Credit

The nonpartisan Joint Committee on Taxation (JCT) recently provided lawmakers with a dynamic score and macroeconomic analysis of a policy to permanently extend the child tax credit (CTC) enacted in President Joe Biden’s American Rescue Plan Act of 2021 (ARP).