Kamala Harris on the LIFT Act

https://www.nytimes.com/2019/06/27/us/politics/kamala-harris-lift-act.html

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In late 2018, Senator Kamala Harris of California announced a proposal called the LIFT the Middle Class Act, a piece of legislation aimed at addressing the rising cost of living by providing middle-class and working families with a significant tax credit. She has been highlighting her proposal on the campaign trail as she seeks the Democratic nomination for president.

The legislation would provide up to $6,000 a year in the form of a refundable tax credit for households earning under $100,000 annually, and up to $3,000 for single filers earning under $50,000 per year.

If passed, it would come on top of existing tax credits and public benefits for lower-income Americans.

In making the case for the tax credit, Ms. Harris’s team cites a survey that found that 57 percent of Americans do not have enough cash to cover an unexpected $500 expense.

The LIFT Act is essentially Ms. Harris’s attempt to close the wealth gap. It places her into the growing group of candidates who have suggested addressing the issue through various measures like baby bonds, universal basic income and a wealth tax.

The policy allows Ms. Harris to address income inequality while avoiding the anti-Wall Street rhetoric associated with Senators Bernie Sanders of Vermont and Elizabeth Warren of Massachusetts.

Ms. Harris has also used the policy as a catchall description of her economic vision, reframing questions about the racial wealth gap and reparations, for instance, into a broader discussion of racial and economic disparity.

Rather than trying to appease the party’s left wing, Ms. Harris is betting on an incremental approach. But some progressives view the LIFT Act as not bold enough to really help the neediest Americans.

The legislation would need to pass both houses of what could be a sharply divided Congress. And it is not clear how the federal government would recover the tax dollars refunded by the tax credit.