Vice President Kamala Harris has made it clear that building up the middle class will be a top priority during her presidency. She recognizes that a strong middle class is essential for a strong America and that families need relief from the high cost of living in order to not just get by, but to get ahead. In light of the challenges faced by working-class Americans due to inflation and concerns about job security, there is a pressing need for policies that provide tangible support to those struggling to make ends meet.
Harris has advocated for the LIFT the Middle Class Act, which would provide annual tax credits of up to $3,000 per person (or $6,000 per couple) for lower- and middle-income workers. While such a tax credit would offer significant relief to those in need, there are concerns about the cost of implementing such a program. Funding mechanisms would need to be carefully considered to ensure that the benefits reach those who need them the most without exacerbating the federal budget deficit.
In addition to tax credits, Harris has also proposed rent caps as a way to address the affordability crisis facing renters. However, economists warn that rent control policies could have unintended consequences, such as reducing the supply of rental units and impacting rental markets. While rent caps may provide a temporary solution to rising rents, they could lead to market distortions and ultimately harm the very people they aim to help.
While the LIFT Act has its merits, experts suggest that expanding the child tax credit may be a more effective way to combat poverty and support families. The American Rescue Plan boosted the child tax credit, leading to a significant reduction in child poverty rates. Renewing and expanding the child tax credit could be a better way to provide financial support to families in need, especially in the aftermath of the pandemic.
As Harris navigates the complexities of economic policy, she faces the challenge of balancing competing priorities and finding sustainable solutions to support the middle class. While the LIFT Act and rent caps are potential measures to provide immediate relief, expanding the child tax credit may offer a more comprehensive approach to addressing economic disparities. As the political landscape continues to evolve, it remains to be seen which policies Harris will prioritize to strengthen the economic well-being of American families.