CTC

One of the big problems facing the country is the widening wealth gap and the proposed increases in the child tax credit (CTC) by both sides will help to shrink this gap. Harris wants a one time $6,000 credit along with bringing back the $3,600 credit that was instigated during the Covid. Trump is proposing a $5,000 tax credit across the board. A $5,000 credit means a family of four will pay no income tax up $140,000. This means that 90% of families with two or more children will pay no income tax. The top one percent of taxpayers pay 26% of their income in taxes and this would have to increase to 35% to cover the child tax credit. To avoid loop holes the capital gains tax would be eliminated and all income would be taxed as regular income.