Politics

Child Tax Credit Takes Center Stage in 2024 Presidential Election

Published

3 weeks ago

2024-08-25

Child Tax Credit Takes Center Stage in 2024 Presidential Election

The popular child tax credit has emerged as a major topic of contention in this year’s presidential election, with both parties attempting to outdo each other in terms of family friendliness.

Vice President Kamala Harris, the Democratic presidential nominee, prioritises increasing the child tax credit as part of her four-part program to reduce expenses for American families.

The platform also includes initiatives to make housing, groceries, and prescription prescriptions more accessible. She wants to reinstate the 2021 American Rescue Plan Act’s expanded credit of up to $3,600 per kid, which was only in place for a year, as well as establish a $6,000 credit for newborns.

Meanwhile, Ohio Sen. JD Vance, the GOP vice presidential nominee who has consistently claimed Democrats are anti-family, told CBS News earlier this month that he’d like to see the child tax credit increased to $5,000 per child, but that would depend on how “viable” that would be in Congress. Former President Donald Trump, whose daughter Ivanka advocated for expanding the credit during his first term, stated in a recent CBS News interview that he supported a big child tax credit.

“Campaigns are looking for policies that are popular and populist,” said Josh McCabe, director of social policy at the Niskanen Centre, a right-leaning think tank, stressing that raising the amount of the child tax credit is the most appealing to voters. Furthermore, unlike the child care credit, this credit is not restricted to a specific need. “With the child tax credit, families see it as being able to spend it on whatever they want.”

Vance and Democrats have spat over the credit, with Vance wrongly alleging Harris wants to abolish it and Democrats accusing him of missing a vote to temporarily broaden it.

Whoever wins the White House will have to deal with the child tax credit next year, as it is set to revert to a maximum of $1,000 in 2026, down from the current $2,000 ceiling established by the Republicans’ Tax Cuts and Jobs Act of 2017. The credit is one of several individual income tax provisions that expire at the end of next year.

Here’s all you need know about the child tax credit:

What is the Child Tax Credit?

The child tax credit, which about 46 million families will use in 2022, was adopted by a Republican-controlled Congress and signed into law by then-President Bill Clinton, a Democrat, in 1997. Margot Crandall-Hollick, a lead research associate at the independent Tax Policy Centre, described it as a relatively modest tax benefit for middle-income families intended to help alleviate the financial strain of having children.

“The child tax credit appeals to families, and as a result, it appeals to politicians,” she added, stressing that nearly 90% of families with children will receive it in 2022.

Originally, the credit of up to $500 per kid was nonrefundable, which meant that parents had to earn enough to pay federal income taxes to qualify for it. However, it began to phase out for single taxpayers with incomes of more than $75,000 and married couples earning more than $110,000.

Since then, the credit has been enhanced in a variety of ways, including an increase to as much as $2,000. Furthermore, it is now partially refundable, allowing lower-income families to get at least a portion of the credit if they earn at least $2,500, even if they do not pay federal income tax. And more higher-income households are eligible now that the benefit is being phased out for single parents with earnings of $200,000 and married couples earning twice that much.

However, if Congress does not act, the $1,000 maximum credit and lower phase-out levels will be reinstated in 2026. Furthermore, low-income families would need to earn at least $3,000 to qualify.

What the candidates intend to do

By returning the American Rescue Plan enhancement, Harris would significantly raise the size of the child tax credit while also making it fully refundable for millions more low-income families.

The Covid-19 pandemic relief bill increased payments for lower- and middle-income families in 2021 to up to $3,600 per kid up to age 6, and a maximum of $3,000 per child aged 6-17. Furthermore, for the first time, half of the credit was paid in monthly installments from July to December of that year to assist families in meeting their expenses, with the remaining half available for parents to claim when they filed their 2021 taxes.

The upgrade reduced child poverty rates by nearly half in 2021, moving 2.1 million children out of poverty, according to the US Census Bureau. However, the rate recovered to pre-pandemic levels the following year.

Harris would also include a $6,000 credit for children in their first year of life to aid with expenses like car seats and nappies. She hasn’t indicated the income requirement for this credit.

“There’s one more way I’ll help families deal with rising costs, and that’s by letting you keep more of your hard-earned money,” Harris said in a recent speech introducing her economic program, which her team claims will bring tax relief to more than 100 million Americans.

Vance stated on CBS News’ “Face the Nation with Margaret Brennan” that the $5,000 credit should be widely available, but has not provided any specific information on expanding it.

“I don’t think that you want this massive cutoff for lower-income families, which you have right now,” he told me. “You do not want a different approach for upper-income households. “You just want a pro-family child tax credit.”

When asked in a separate CBS News interview whether he supports expanding the credit to $5,000, as his running mate has suggested, the former president said he is in favour of “doing the maximum,” but that it must be discussed by Congress.

The expense of increasing credit has been a source of contention among lawmakers, especially as the country’s debt continues to rise. According to Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, Harris’ proposal could increase federal deficits by about $1.2 trillion over the next decade, while Vance’s proposal could cost between $2 trillion and $3 trillion. Goldwein cautioned that the estimates could change if the candidates release more information about their proposals.

Efforts by President Joe Biden and congressional Democrats to extend or scale back the 2021 extension were failed. Earlier this month, Senate Republicans rejected a package that would have increased credit for low-income families and restored business tax incentives. Earlier this year, the legislation passed the House with bipartisan support.

Source: CNN

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Trump Media Stock Jumps After Former President Says He Won’t Sell Shares When Lockup Expires

Published

2 days ago

2024-09-16

Kiara Grace

NEW YORK — Trump Media & Technology Group Corp. shares rose on Friday after former President Donald Trump said he would not sell his ownership in the social media company.

“I don’t want to sell my stock. “I don’t need money,” Donald told reporters at his golf club in Los Angeles.

Donald owns over 115 million shares in the corporation, according to a recent SEC filing. According to Thursday’s closing price of $16.08, Donald’s stock is worth nearly $1.85 billion.

Trump Media Stock Jumps After Former President Says He Won’t Sell Shares When Lockup Expires

If the former president desires, he can begin selling shares of Trump Media, the parent company of Truth Social, on September 19, when a lockup provision expires. The lockup agreement banned corporate insiders from selling newly issued shares for six months after the company went public in March.

Even though Donald would earn a sizable payoff if he sold, Trump Media’s stock is now significantly less valuable than it was six months ago. When the company debuted on the Nasdaq in March, it reached a high of $79.38.

Donald founded Truth Social after being barred from Twitter and Facebook following the Jan. 6, 2021, Capitol brawl. Trump Media, headquartered in Sarasota, Florida, has been losing money and failing to generate revenue. According to regulatory documents, it lost approximately $58.2 million last year and generated only $4.1 million in revenue.

Trump Media Stock Jumps After Former President Says He Won’t Sell Shares When Lockup Expires

“I use it as a method of getting out my word,” Donald remarked on Friday about Truth Social. “For me, it is a great voice.”

Following Donald’s debate with Vice President Kamala Harris, the stock fell by more than 10% on Wednesday. On Friday, shares rose as much as 29% and closed up 11.8%.

SOURCE | AP

Politics

Liberal Defence Departments Spends $34 Million on Sleeping Bags Unsuitable for Canadian Winters

Published

5 days ago

2024-09-13

Geoff Thomas

Sleeping Bags Unsuitable for Canadian Winters

Canadian soldiers travelling to an Alaskan military drill were given 1960s military sleeping bags after complaining that the new ones were poor quality and unsuitable for sub-zero weather.

Despite the Liberal government spending more than $34.8 million on new sleeping bags, the Canadian Army requested late last year that hundreds of soldiers attending a joint northern exercise in Alaska with the Americans be provided antiquated, 1960s-vintage sleeping bags.

In late November last year, about 350 men from the 3rd battalion of the Canadian Princess Patricia’s Light Infantry went to Ram Falls Provincial Park, west of Red Deer, Alta., to train for northern operations.

During the training exercise last autumn, soldiers stated that despite using both the inner and outer shells and sleeping in stove-heated tents, they remained cold.

The temperatures during the exercise ranged from -5°C during the day to -20°C at night. According to an internal DND report dated December 5, 2023, the soldiers noticed “critical issues” with the new GPSBS sleeping bags, including a lack of warmth.

GPSB sleeping bags cost taxpayers $34.8 million, were not suitable for for typical Canadian winter conditions – CBC Image

The inadequacy of the new GPSB sleeping bags caused the Department of National Defence (DND) to begin seeking for extra sleeping bags to keep soldiers warm and usable in the Far North.

The briefing memo proposed that soldiers participating in the drill with the US be “loaned” 500 of the army’s old Arctic sleeping bags, which the new system was intended to replace.

The Trudeau administration has emphasised the importance of protecting Canada’s Arctic in recent defence policy updates, and has committed a series of new equipment acquisitions for cold weather operations.

Specifically, the policy promised to purchase “new vehicles adapted to ice, snow, and tundra.”

However, some soldiers who contacted CBC News with complaints about the sleeping bags expressed scepticism about such claims, citing DND’s failure to deliver on something as fundamental as a sleeping bag fit for the Canadian winter.

The DND stated that the 3rd battalion was the second unit to complain about the new sleeping bags. During a separate drill, troops from the 2nd Battalion, Royal Canadian Regiment, discovered flaws in the new sleeping bags.

Nonetheless, the government stated that it will not abandon the new sleeping bags and has begun a separate procurement of sleeping bags fit for a Canadian winter at an undisclosed cost to taxpayers.

In its statement to the CBC, the DND stated that it solicited comments from soldiers, but they did not respond immediately when asked what type of cold weather testing was conducted before purchasing the sleeping bags.

The GPSBS sleeping bags were chosen through a rigorous competition process, with technical requirements such as insulation value, bag weight, and packing volume, according to the DND.

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Politics

Trudeau’s Grapples With a Mass Exodus of Senior Staff

Published

6 days ago

2024-09-11

Geoff Thomas

Five chiefs of staff for Liberal ministers have quit - Image Counter Signal

The minority Liberals are returning to a precarious position in the House of Commons, having lost the automatic support of the New Democratic Party, as Prime Minister Justin Trudeau’s government is currently grappling with an exodus of senior staff.

According to six Liberal sources who each confirmed some of the names of those leaving, five of his 38 ministers are losing their chiefs of staff in quick succession, with several already gone. These chiefs of staff include the top advisers at Global Affairs, Heritage, Environment, National Revenue, and Mental Health and Addictions.

According to the sources, a number of employees had been contemplating their departures for months, while others had been entertaining the idea for an extended period before ultimately making the decision. Some of the sources stated that five out of 38 is a significant decrease, despite the fact that the Liberals have frequently encountered turnover among their ministerial staff since assuming office in 2015.

The Globe and Mail is refraining from disclosing the sources due to their inability to disclose an internal staffing change.

A spokesperson for the Prime Minister’s Office downplayed the importance of the departures. Hundreds of political personnel are responsible for providing support to our government, cabinet ministers, and members of Parliament. Turnover is a typical aspect of the employment process for the personnel who perform this critical function, according to Mohammad Hussain, the press secretary for the PMO.

Trudeau’s loss of its top executive

Peter Wilkinson, the director of staff to Foreign Affairs Minister Mélanie Joly, is departing the office less than two years after his appointment. Senior staff member Jamie Kippen, who has served as the chief of staff to Environment Minister Steven Guilbeault for an extended period, has already completed his final day. Jude Welch, the director of staff for Heritage Minister Pascale St-Onge, has already departed.

Sarah Welch, the chief for Ya’ara Saks, the Minister of Mental Health and Addictions, and Frédérique Tsai-Klassen, the chief to Minister of National Revenue Marie-Claude Bibeau, are also departing. According to the sources, the majority of the senior staff who are departing do not currently have a position lined up. However, they are eligible for severance payments that are calculated based on their years of service.

The party’s loss of its top executive, national campaign director Jeremy Broadhurst, a prominent senior Liberal for the past two decades, coincides with the exodus of top staff in ministerial offices. He was previously the national campaign director in 2019 and a senior adviser in the PMO before returning to the party last year.

Mr. Broadhurst tendered his resignation on Thursday, mere days prior to Mr. Trudeau’s scheduled meeting with his caucus in Nanaimo, British Columbia. Three Members of Parliament informed The Globe that they are anticipating the Prime Minister’s presentation of a credible strategy to regain the support of Canadian electors.

Senior staff members have resigned

According to two senior officials, it is unlikely that Mr. Trudeau will designate a replacement for Mr. Broadhurst at the caucus meeting. Nevertheless, an official in the PMO stated that the caucus will be provided with a comprehensive roadmap for the upcoming election. The two officials who were prohibited from disclosing the internal planning are not being identified by The Globe and Mail.

In addition to the anticipated resignation of Transportation Minister Pablo Rodriguez and the departure of Labour Minister Seamus O’Regan in July, all of the senior staff members have resigned.

Mr. O’Regan was a significant political ally of Mr. Trudeau. Mr. Rodriguez is anticipated to declare his departure from the federal Liberals in order to participate in the provincial party’s leadership race, as he currently occupies the most significant political position in Quebec for the government.

“I believe it is a sign of the end of government,” Lori Turnbull, chair of the public and international affairs department at Dalhousie University told the Globe and Mail. She said senior staff members are aware that their departures will only exacerbate the perception and reality of the current state of Trudeau and the government.”

“There is a perception that the Trudeau government has reached its conclusion and that the upcoming election will result in a loss.” The departure of senior staff indicates that even those who are committed to Team Trudeau can perceive the impending doom.

“It raises the question of whether we would witness the same departures in the event that a new leader were selected,” she continued.

The second-in-commands for each office have already been appointed to numerous top-level positions; however, the most critical position at Global Affairs has yet to be permanently replaced.

As of Sunday, Alexandre Boulé has assumed the role of interim chief for Ms. Joly, according to her office. In the interim, deputy chief of staff Joanna Dafoe will succeed Mr Kippen at Environment, and deputy Michael Lartigau will succeed Mr Welch at Heritage.

Marianne Dandurand has succeeded Ms. Tsai-Klassen as the superintendent of National Revenue.

The office announced on Sunday that the position of chief to the Mental Health and Addictions minister is still vacant.