VP Harris Releases her Economic Plan

Harris proposes an expanded child tax credit as well as housing assistance. The Democratic presidential nominee Kamala Harris revealed her economic plan Friday. It includes the expansion of the Child Tax Credit (raising it to $6,000 for new-borns). Her campaign has not yet detailed how the plan would be paid for or what Harris would do with the expiring provisions of the Tax Cuts and Jobs Act (TCJA).

Trump’s tariffs would raise household taxes and slow imports. TPC based its latest estimates on its modeling of Trump’s tariffs. Trump’s proposed tariffs of 10 percent worldwide and 60 percent on Chinese goods, would reduce average US household incomes in 2025 by $1,800 or 1.8 percent. It would also reduce imports to the US by $5.5 trillion or 15 percent between 2025-2034. NBER report: TCJA decreased charitable giving by $16 billion a yearly.

A new paper from the National Bureau of Economic Research (NBER) finds the TCJA reduced charitable giving incentives for about 20 percent of taxpayers by nearly doubling the standard deduction.There’s more to learn about the tax treatment of Asian American families.

TPC’s Bill Gale, and Julie Gnany use newly available data to find that Asian American households, among those in the top 20% of the income distribution pay a higher individual tax rate than their white counterparts. While a majority of Asian Americans fall within the top 20 percent, a significant number also fall into the lower 20 to 40% of the distribution. How much do fines, fees and other charges affect the well-being of families? A new research brief by TPC’s Aravind Boddupalli and Susan Nembhard of the Urban Institute’s Justice Policy Center shows how fines and feescan strain the well-being of families already experiencing financial instability and widen income and racial disparities.

Enhanced Premium Tax Credits (PTCs) projected to help over 7 million people afford health insurance in 2025 and reduce the number of uninsured by 4 million. Jessica Banthin of the Urban Institute’s Health Policy Center, Michael Simpson and Mohammed Akel estimate coverage for people under 65 years old in 2025 in order to gauge PTCs’ impact. Congress extended PTCs through 2025 as part of the American Rescue Plan Act in March 2021. Congress will need to decide soon whether to extend enhanced PTCs once again, make permanent or let them expire. Is the question “Is government too big?” the right one? Gene Steuerle, TPC’s Gene Steuerle, argues that the debate about right-sizing the government is misplaced. This is especially true when it focuses primarily on tax cuts or spending increases that increase deficits. Instead, he suggests, “modern governance mainly requires shifting resources–especially those made possible by economic growth–to meet the opportunities, needs, and democratic wishes of today’s and tomorrow’s electorate.”Congress is not in session. The Daily Deduction will be posted on Mondays until Monday, September 9. Subscribe to the Tax Policy Center Daily Deduction for the latest tax news.

Sign up to receive it in your inbox every weekday at 8:00am (except Mondays when Congress is on recess). We welcome any tips about new research or news. Email Renu Zaretsky.

Story originally seen here