The individual provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025. The Republican-controlled Congress intends to extend these tax cuts but some Republican lawmakers are demanding changes.
There has been a flurry of discussion in Washington recently about potential reforms to the child tax credit (CTC).
Last month, former President Donald Trump declared, “If you’re an overtime worker, when you’re past 40 hours a week . . . your overtime hours will be tax-free.”
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.
Earlier this week, Vice President Kamala Harris, campaigning in Nevada, endorsed exempting tips from the individual income tax. This follows former President Donald Trump’s proposal last month to do the same.
