6 States That Would Benefit the Least From JD Vance’s Proposal For Families
Republican vice presidential nominee JD Vance broke ranks with many GOP lawmakers earlier this month when he voiced support for increasing the federal child tax credit. In an Aug. 11 appearance on “Face the Nation,” Vance said he would “love to see a child tax credit that’s $5,000 per child,” CBS MoneyWatch reported. That represents a big hike from the current credit of $2,000.
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Vice President Kamala Harris, the 2024 Democratic presidential nominee, also supports an expanded CTC, Newsweek reported. Her idea is even more ambitious than Vance’s because she recommends a credit of $6,000 per child for the first year after birth and $3,600 per year for every year after that.
Both plans might be a hard sell because of the cost to the government, however.
“We could easily be talking about $2-$3 trillion in additional borrowing over the next decade,” Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, told CBS MoneyWatch. “That’s a tremendous amount of money.”
For now, many U.S. households must make do with the $2,000 federal credit. But as previously reported by GOBankingRates, eligible families living in states that passed their own legislation when the federal enhanced CTC was discontinued can still get a tax credit.
Here are six states that would benefit the least from Vance’s proposal because they already have generous child tax credit programs.
California
Families eligible for CalEITC — the state’s Earned Income Tax Credit — who have a child under the age of six at the end of the tax year may also be able to receive the Young Child Tax Credit. It provides up to $1,117 to eligible families with yearly earned income of $30,931 or less. This is a refundable credit.
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Colorado
You might qualify for Colorado’s Child Tax Credit if you’re a single filer who makes up to $75,000 a year, or you’re a joint filer who makes up to $85,000 and have a child or dependent under the age of six as of Dec. 31. The tax credit maximum is $1,200 and is refundable.
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Minnesota
Minnesota lawmakers created the CTC of $1,750 per qualifying child under 18-years-old for households with income up to $29,500 for singles filers and $35,000 for married joint filers. The credit phases out above these income thresholds.
Oregon
Oregon’s Child Tax Credit provides $1,000 per child for up to five dependent children under the age of six. Families earning $25,000 a year or less receive the full credit. The credit begins phasing out after $25,000 of modified adjusted gross income and phases out completely at a MAGI of $30,000.
Utah
Utah’s Child Tax Credit lets eligible families claim up to $1,000 per child each year. This credit is for children ages one through three. Full amounts are available to singles filers making $43,000 a year or less and married joint filers who earn $54,000 or less. The credit phases out at incomes above these thresholds.
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Vermont
Vermonters can receive a child tax credit of $1,000 per child under the age of six if they earn less than $125,000 annually. Households earning $125,000 to $175,000 receive a reduced amount.
GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out 10 States That Would Benefit Most From JD Vance’s Proposal for Families.
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