Considering that the GOP — including the likes of Donald Trump’s VP pick JD Vance — is so adamant in pushing for measures seeking to revert low birth rates even at the expense of women’s freedom of choice, it would be the epitome of hypocrisy if they made it impossible for working families with children to get the help that they need to thrive or, at the very least, live out of poverty.
In 2017, during Trump’s first presidential term, a $1.5 trillion tax overhaul was passed, which doubled the Child Tax Credit (CTC) from $1000 to $2000 – Vance has voiced his wish to have it increased to $5000 – and was extended to high-income families with a $400 thousand ceiling for married couples. Trump’s Tax Cuts and Jobs Act is set to expire this year, meaning that, if nothing is done and Congress is at an impasse for predictably petty reasons, families may have their CTC cut in half.
New developments occurred in 2021, when “The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of 6 and from $2,000 to $3,600 for children under the age of 6, and raised the age limit from 16 to 17.” This made sure that “low-income families with children are eligible for this crucial tax relief – including those who have not made enough money to be required to file taxes.” (per U.S. Department of the Treasury)
During the 2024 race for the White House, both candidates (Kamala Harris and Trump), showed support for child tax cuts. It remains to be seen whether Trump will put his money where his mouth is.
This year may make it or break it
During her campaign, Harris expressed her intention to decrease child poverty by expanding tax cuts and “sending checks to millions of parents with low pay or no jobs.” While Trump did indeed pass the 2017 tax law it also meant that “millions of children get partial benefits, and one in 10 gets nothing, because their parents have low earnings and little or no income tax to offset” (via The New York Times).
The Institute on Taxation and Economic Policy reported on Jan. 17 that while “President Trump and the Republican majorities in the House and Senate plan to extend the temporary parts of the Trump tax law that will otherwise expire at the end of this year, “they may not extend the one part of the 2017 law that significantly limits tax breaks for the rich.”
Also on Jan. 17, The Congressional Budget Office published its “Budget and Economic Outlook: 2025 to 2035”, a reflection of economic developments as of Dec. 4 of last year. The projections are, for the most part, far from ideal:
“From 2025 to 2035, debt swells as increases in mandatory spending and interest costs outpace growth in revenues. Federal debt held by the public rises from 100 percent of GDP this year to 118 percent in 2035, surpassing its previous high of 106 percent of GDP in 1946.
CBO raised its forecast of the average unemployment rate for 2024 to 2026 and lowered its forecast of employment growth over that period. Inflation is expected to be slightly higher, on average, in 2025 and 2026 than the agency projected in June. The forecast of long-term interest rates for 2026 is also higher.”
These facts and projections should be a reminder – in case, you somehow forgot or never noticed – that Trump is ultimately for his own class, the wealthy, but he still needs to appear as a champion of the working class to hoard the support necessary to win back the highest office in the nation. That said, this second term, Trump has nothing to lose by acting however he wants considering that he is not eligible – unless something happens to the 22nd Amendment of the US Constitution in the next four years – for a third term.
As the JD Vance clip above makes blatant, this new administration will be acting on a highly subjective and self-centered basis of what ultimately aligns with them and their agenda’s interests and whims.
Published: Jan 19, 2025 08:42 am