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leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and local
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Analysis of Senator Kamala Harris’s
“LIFT the Middle-Class Act”
• Senator Kamala Harris (D-CA) announced plans to introduce legislation to
create a new refundable tax credit that would be available to low- and middle-
income taxpayers, called the “LIFT the Middle-Class Act.”
• The LIFT credit would reduce federal revenue by $2.7 trillion between 2019
and 2028 on a conventional basis.
• LIFT would slightly increase the weighted average marginal tax rate on labor,
leading to 825,906 fewer full-time equivalent jobs and a 0.7 percent smaller
economy in the long run. Pretax wages would remain unchanged.
• The smaller projected economy over the next decade would result in slightly
lower revenue collections. As a result, we estimate that this proposal would
reduce federal revenue by $2.8 trillion on a dynamic basis.
• LIFT would greatly increase the progressivity of the tax code by raising the
after-tax incomes of the bottom 20 percent of taxpayers by 20.5 percent.
Overall, taxpayer after-tax income would rise by 2.4 percent.
Economist and Director,
Center for Quantitative Analysis
TAX FOUNDATION | 2
Senator Kamala Harris (D-CA) announced plans to introduce legislation to create a new refundable
tax credit that would be available to low- and middle-income taxpayers. Called the “LIFT the Middle-
Class Act” (LIFT), this proposal would create a new $3,000 credit ($6,000 for married couples filing
jointly). According to Sen. Harris, she introduced the credit with the