As the presidential campaign heats up and with a hotly anticipated debate coming between Vice President Kamala Harris and former President Donald Trump, a tax expert is weighing in with his thoughts about the child tax credit and other proposals.
"The Harris campaign is right to focus on providing relief for child care," said Rick Lazio, a former Republican congressman from New York and current senior vice president of the tax consulting firm
During Harris'
"For example, extending the child tax credit to $6,000 for families for the first year of their child's life to help them buy a car seat, to help them buy baby clothes, a crib," said Harris when asked what she would do on day one of her administration if she were elected. "There's the work that we're gonna do that is about investing in the American family around affordable housing, a big issue in our country right now. So there are a number of things on day one."
"What we need to do to extend the child tax credit to help young families be able to take care of their children in their most formative years," she later added. "What we need to do to bring down the cost of housing. My proposal includes what would be a tax credit of $25,000 for first-time home buyers so they can just have enough to put a down payment on a home, which is part of the American dream and their aspiration, but do it in a way that allows them to actually get on the path to achieving that goal and that dream."
Walz pointed out that his state had a child tax credit of its own. "Well, I'm excited about this agenda, too. As I said, the idea of inspiring America to what can be. And I think many of these things that the vice president's proposing are — are things that we share in values. And the child tax credit's one we know that reduces childhood poverty by a third. We did it in Minnesota. To have a federal partner in this —unbelievable, I think, in the impact that we can make."
Lazio would like to see the Harris campaign do more on tax policy. "I'm scratching my head to understand why, overall, the Harris campaign has been silent on a growth agenda for tax policy," he said. "We can't bring opportunity to lower-income Americans without private sector growth. People of color and lower wealth Americans want opportunities to own a house, build a business, have a full range of good financial options. Those opportunities won't open up without an expanded private sector. Government and healthcare service jobs alone won't do it."
He wants to see an extension of pro small business tax provisions from the Harris campaign. "Where is the Harris campaign on incentivizing innovation, helping American companies compete with state subsidized behemoths, supporting the small businesses that employ more than half of American workers?" Lazio added. " Opportunity and growth are inextricably linked. Only in a single moment during her DNC speech did Harris mention small-business owners, noting she'd lift them up by opening access to capital. However, there are even more effective ways to jumpstart their innovation. Up until recently, small businesses have generated most of the industry innovation in America, while employing half of working Americans. Yet, small businesses today are facing a uniquely troubling and urgent crisis as their ability to conduct research and development continues to remain hamstrung. For Harris to truly aid small business owners, her tax plans must incentivize them to innovate by fixing the disastrous impacts of recent R&D tax changes. Removing barriers to small business success — including allowing them to amortize R&D spending over multiple years and preserving the IRS Section 199 provision for pass-through businesses — will be a key barometer for how well Harris can grow the economy."
