Harris Supports Enhanced Child Tax Credit and Housing Programs

Harris backs expanded credits Vice President has presented a comprehensive economic agenda, emphasizing a notable increase in the child tax credit and a bold initiative to construct 3 million new housing units. In a speech delivered in Raleigh, N.C., Harris underscored her dedication to these policies and outlined her plans to impose penalties on companies engaged in price gouging. Her statements reflect a more detailed exploration of her policy proposals since joining the Democratic ticket last month, responding to earlier criticisms regarding the perceived absence of a thorough economic vision in her campaign.

Contrasting Economic Approaches

Harris sharply criticized Trump’s trade policies, especially his proposal for a 10% tariff on all imports. Deutsche Bank estimated Trump’s proposed 60% tariff on Chinese imports, combined with the overall tariff. This could potentially increase consumer prices by 1.4% to 1.7%. Trump and his team argue these tariffs protect American industries. However, they could adversely affect consumer costs.

In response, Trump has blamed the Biden administration’s policies for high inflation and financial strain on American families. He argues that current economic conditions have damaged the middle class and led to severe financial challenges for millions, according to wsj news.

Expanding the Child Tax Credit

In her 25-minute speech, Harris proposed reinstating and expanding the child tax credit, which provided up to $3,600 per child in 2021. She suggested extending the credit to offer up to $6,000 in total relief for middle- and low-income families during a child’s first year. These proposals would need congressional approval and may face opposition from Republicans. However, some, like Sen. JD Vance, have shown support for an expanded credit.

Housing Initiatives and Tax Incentives

Harris’s housing agenda sets a target of 3 million new homes, surpassing the Biden administration’s 2 million-unit goal. To support this, Harris proposed a new tax incentive for companies building homes for first-time buyers. Specific details of the incentive are still pending.This plan aligns with recommendations from economists Mark Zandi and Jim Parrott. They advocate for tax relief to encourage affordable home construction.

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Combating Price Gouging and Prescription Drug Costs

Harris has pledged to implement a federal ban on alleged corporate price gouging within her first 100 days in office. She will scrutinize large food company mergers to prevent price increases. Additionally, she supports recent Biden administration actions to lower prescription drug prices. Harris plans to accelerate these efforts, including capping insulin and out-of-pocket costs.

Additional Housing Support

Harris proposed a $40 billion fund to help local governments tackle housing shortages, building on the Biden administration’s $20 billion. She also supports legislation against property-management software allegedly used to fix rent prices. Additionally, Harris advocates for a $25,000 down-payment assistance program for first-time homebuyers.

Despite the current low mortgage rates, home-buying affordability remains a challenge, reaching its lowest point last fall and nearing that level again in June. The administration has also taken executive actions to reduce closing costs on certain mortgages.

Harris backs expanded credits as her campaign advances, with her economic advisors developing additional policy proposals. More specifics are anticipated in the coming weeks.

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