Harris: The vice president has introduced an opportunity economy initiative focused on strengthening the middle class through targeted tax policies. She has pledged not to raise taxes on individuals earning $400,000 or less annually. Harris’s plan includes expanding the Earned Income Tax Credit for lower-income workers and offering a $6,000 tax credit for families with newborns in their first year. Additionally, she proposes a $3,600 per child tax credit for middle—and lower-class families in subsequent years.
Harris also proposes a $25,000 tax credit for first-time homebuyers and plans to enhance health care subsidies under the Affordable Care Act. Her campaign estimates these changes would save Americans an average of $700 on health insurance premiums. According to the nonpartisan Tax Policy Center at the Urban Institute and Brookings Institution, Harris’ proposals would primarily benefit middle- and lower-income households. They estimate that 70% of households earning $113,000 or less would benefit from expanding the Earned Income Tax Credit, the child tax credit, or the first-time homebuyer credit.
Both Harris and Trump have proposed eliminating income tax on tipped income. However, the Harris campaign clarified to CNN that, under her plan, tipped income would still be subject to payroll taxes. Additionally, Harris’ proposal would include an income cap and safeguards to prevent high earners, such as hedge fund managers, from exploiting the policy an issue raised with Trump’s version of the plan.
