Senator Kamala Harris wants to take back our tax cuts and instead give a new monthly check to some families.
It seems a lot like she is just repackaging some of the same middle-class tax relief that President Trump and conservatives delivered to most taxpayers last year, but redistributing that tax relief to fewer people.
The California senator released a plan to repeal most of the recent $1.5 trillion in tax cuts and replace them with a new tax credit worth up to $3,000 for individuals and $6,000 for families earning as much as $100,000 a year. The credit would phase out as income rises, but because it’s refundable recipients still get cash even if they don’t owe any taxes.
The catch is that instead of waiting until tax season to apply that credit to their tax filings, recipients can receive it as a monthly payout. Like the Earned Income Tax Credit (EITC), this new credit would be ripe for fraud and overpayments to the wrong people. Good luck trying to recapture that cash, especially when it’s sent out monthly.
Isn’t that really just another new government entitlement program?
And wait. Working-class American households received a host of financial help from the tax reform law. Harris’s plan would repeal all of that.
The Republican-passed tax plan doubled the standard deduction to $12,000 for single ?lers, $18,000 for single parents and $24,000 for couples. It signi?cantly expanded the child tax credit to $2,000 ($1,400 of which is refundable) per child and provided new credits of $500 for each other dependent.
To do this, Congress didn’t take back but kept and even expanded other popular and important tax bene?ts for women and families including for higher education, adoption, mortgage interest, charitable contributions, retirement savings, and healthcare expenses.
Harris has been scant on the details, but it sure looks like she wants to take back with one hand from everyone to give to a few with the other hand.
Don’t be fooled. Just repealing the tax reform law would be a huge tax increase for American families. According to Heritage Foundation analysis, if the tax law were repealed the average household would lose almost $27,000 in take-home pay from 2020 to 202.
Liberals are looking for ways to help American families and they rightly recognize that tax relief is the way, but repealing last year’s tax relief and handing out a new entitlement for some families is not the right way.
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