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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 alliantgroup. “The cost of child care has spiked over the past several years. This is often a barrier to women who would like to stay in the workforce, as well as those who wish to enter the workforce. In either case, the economy is denied workers who are in demand. However, the high price tag for the child tax credit is an overreach and should be targeted to help those who are low wage earners. Well run organizations look to outcome-based data to determine whether the money spent is translating to the measurable outcomes that were promised. The Harris campaign team would score points for using more private sector discipline in pursuit of the public mission. Boosting affordable housing would likely provide an even better cost-based outcome than untargeted tax credits for families with children.”
During Harris’ interview Thursday night with CNN’s Dana Bash, she and her running mate, Minnesota Governor Tim Walz, discussed a proposed expansion of the child tax credit.
“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.”
Featured Leadership
Rick Lazio is a former U.S. Representative from New York serving in Congress from 1993-2001. While there, he became a strong advocate for small businesses by sponsoring the successful Small Business Tax Fairness Act. Rick is committed to his continued interest and support of small to mid-sized businesses by brokering his insight and experience in the public and private sectors to provide strong incentives for job growth. This interest has extended into his civic and philanthropic work in New York with the Committee for Economic Development and the Association for a better New York.
Dhaval Jadav is Chief Executive Officer of alliantgroup, America’s leading consulting and management engineering firm, which helps American businesses overcome the challenges of today to prepare them for the world of the 22nd Century and beyond. Jadav co-founded the firm in 2002 to be unlike any other consultancy, with an emphasis on partnerships with clients to not only identify but also implement quantifiable solutions to their most critical concerns.
