Recent proposals outlined by Vice President Harris as part of her Agenda to Lower Costs for American Families could potentially increase the nation’s deficits by $1.7 trillion over ten years, according to a new analysis. Despite this projection, the Harris campaign is confident that higher taxes on the wealthy will offset these costs.
On Friday, Harris introduced several economic measures she would implement if elected president, including an enhancement of the child tax credit (CTC), which aims to provide $6,000 in tax relief to families with newborns. Her plan also seeks to reinstate a previous expansion of the CTC from the American Rescue Plan of 2021, potentially offering up to $3,600 per child for some families.
Harris’s expanded tax credits and affordable housing measures are projected to push deficits up by $1.7 trillion over ten years
The Committee for a Responsible Federal Budget (CRFB) estimated that expanding the CTC could incur costs of $1.2 trillion from fiscal year 2026 to 2035. Additionally, proposals to enhance the earned income tax credit (EITC), introduce a tax credit for first-time homebuyers, extend the Affordable Care Act premium tax credit, and support affordable housing could add up to $700 billion in expenses over the same period.
CRFB’s analysis suggests that the total cost of Harris’s plan could reach $1.95 trillion over ten years, potentially climbing to $2.25 trillion if some housing measures become permanent. However, the analysis also notes that these costs could be partially offset by an estimated $250 billion in savings from proposed reductions in prescription drug costs.
The Harris campaign has indicated that any costs exceeding the fiscal 2025 budget would be covered by increased taxes on corporations and high-income earners. This latest estimate joins other projections, including one from the Congressional Budget Office in May, which suggested that extending tax cuts from Trump’s 2017 tax law could seriously impact the nation’s deficits over the next decade.
