Harris' tax plan focuses on lightening the middle class, not on the very wealthy

The California Junior Senator who officially announced Sunday her bid for the 2020 presidency, said the middle class had been ignored. She wants to offer them, as well as low-income families, a tax credit of up to $ 6,000 a year to help cover their living expenses, a tax donation of $ 3 trillion 10 years.

direction. Bernie Sanders and Elizabeth Warren, both potential candidates for 2020, and new recruit Alexandria Ocasio-Cortez, have all outlined the plan to dramatically increase taxes on the ultra-rich . Last week, Warren, who was exploring the field, unveiled a proposal to levy a wealth tax in excess of $ 50 million, while Ocasio-Cortez suggested imposing a tax 70% on revenues over $ 10 million for "Green New Deal" which would include an employment guarantee and an investment in renewable energy.

Harris, who will be attending a CNN town hall on Monday night from Iowa, is also supportive of raising the taxes of the top 1% richest," said Lily Adams, its director of communications The Senator first introduced her tax credit idea for the middle class last fall after hearing from people whose paychecks do not match the cost of living. at home,

Unlike a conventional tax credit, the bill would also allow taxpayers to benefit from the allowance – up to $ 500 – on a monthly basis. According to the proposal, this would offer families an alternative to payday loans, usually with very high interest rates.

However, the non-partisan Tax Policy Center estimated that the total cost would be $ 3 trillion over 10 years.

Harris proposes to pay him by repealing the provisions of the 2017 GOP Tax Act that benefit these people. earn more than $ 100,000 and charge fees to financial institutions. But experts say this is not enough to cover the cost.

The Bill entitled LIFT of the Middle Class Act, or Income of Life for today's families, aims to expand the tax benefits accorded to American workers. It would supplement the earned income tax credit, which allows low-income parents to work. However, the Harris bill would also provide credit to the childless.

Extending the EITC to a larger number of people – especially men without children – has long enjoyed bipartisan support, although Republicans have more recently opposed the idea. , the cost, said Alan Viard, a resident researcher at the conservative American Enterprise Institute. And the GOP is not likely to support the legislation proposed by a Democratic presidential candidate.