The Housing, Child Tax Credit, and Student Loan Debates: What Walz and Vance Are Saying on Key Issues
As the 2024 Presidential election heats up, the candidates’ stances on critical economic issues are coming under intense scrutiny. Among the most debated topics are housing affordability, the child tax credit, and student loans. With Democratic vice presidential candidate Minnesota Governor Tim Walz and Republican Vice Presidential candidate Sen. JD Vance (R-OH) vying for the support of American voters, their views on these crucial issues are attracting considerable attention.
Key Takeaways:
- Housing: Both candidates recognize the importance of affordable housing but differ in their approaches. Walz supports demand-side policies aimed at assisting individuals, while Vance advocates for reducing institutional ownership of rental homes and limiting Chinese investment in U.S. real estate.
- Child Tax Credit: The future of the child tax credit, which is set to expire in 2025, is a major point of contention. Walz has championed a state-level refundable child tax credit in Minnesota, while Vance’s position on extending the federal credit remains unclear.
- Student Loans: Vance has been a vocal critic of student loan forgiveness, arguing it disproportionately benefits the wealthy. Walz, however, has supported loan forgiveness programs for specific groups, highlighting the burden of student debt on individuals pursuing careers like nursing.
Housing: A Shared Challenge, Different Solutions
Affordable housing has emerged as a critical issue for voters across the political spectrum. Both Walz and Vance acknowledge the problem, but their proposed solutions diverge significantly.
Walz, known for his progressive stance on housing, has taken concrete steps in Minnesota. In 2023, he signed housing legislation allocating $200 million towards down payment assistance, $200 million for housing infrastructure, and $40 million for workforce housing.
“We expect Walz to be an advocate for demand-side approaches to housing," noted Jaret Seiberg, analyst at TD Cowen. "These are the type of housing ideas we would expect in a Harris administration."
Demand-side policies focus on improving housing quality or reducing monthly costs for individual households. This approach aligns with Walz’s focus on alleviating financial pressures faced by homeowners and renters.
Vance, in contrast, has expressed concerns about factors he believes inflate housing costs, particularly institutional ownership of rental homes and Chinese investment in U.S. real estate. He has argued that addressing these factors is essential for improving affordability.
"Prior to running for Senate, Vance argued that one key to tackling poverty is to address affordable housing," wrote Seiberg.
Whether Vance’s emphasis on limiting institutional ownership, a proposal often linked to conservative economic policies, will resonate with voters remains to be seen.
Child Tax Credit: A Divided Outlook on a Vital Program
With the child tax credit facing expiration after 2025, the debate over its future has intensified. The credit, worth up to $2,000 per child, has been a significant source of support for families, particularly those with low incomes.
Walz has taken a proactive approach by enacting a state-level refundable child tax credit in Minnesota. The program, regarded as the most generous for low-income households nationwide, reflects Walz’s commitment to addressing child poverty.
"Minnesota’s new child tax credit is unusual in its narrowness," stated Jared Walczak, vice president of state projects at the Tax Foundation. "But it is the most generous in the nation for low-income households."
A permanent federal child tax credit expansion, however, faces significant hurdles. The divided Congress and concerns about the federal budget deficit add to the difficulty of reaching a consensus.
Vance, who has positioned himself as a pro-family candidate, has expressed support for the child tax credit but has not taken a clear stance on its expansion. Republicans blocked a federal expansion last week, with Senator Mike Crapo (R-Idaho) describing the vote as a “blatant attempt to score political points.”
Despite the failed vote, Crapo indicated openness to negotiating a solution acceptable to a majority of Republicans.
The Democratic-led vote aimed to push Vance, who has not clearly articulated his position, to take a stance on the issue.
Student Loans: A Clash of Perspectives on Debt Relief
Vance has been a vocal opponent of student loan forgiveness policies, arguing they unfairly benefit the well-off. He has particularly targeted universities for what he perceives as their role in driving up student debt.
"Forgiving student debt is a massive windfall to the rich, to the college educated, and most of all to the corrupt university administrators of America," Vance tweeted in April 2022. "Republicans must fight this with every ounce of our energy and power."
The issue is far from academic, given the staggering amount of outstanding education debt, which currently exceeds $1.6 trillion and affects nearly 43 million Americans. The burden of student debt falls disproportionately on women and people of color.
While Vance has opposed broad-based loan forgiveness, he has indicated support for forgiveness in specific situations, such as when a parent takes out loans for a child who subsequently becomes permanently disabled.
This nuanced position, however, has been criticized by advocates for student debt relief.
"Student debt forgiveness is a working-class issue," stated Jane Fox, chapter chair of the Legal Aid Society Attorneys union, UAW local 2325. "Those in the 1% who went to elite institutions and then worked in private equity as Senator Vance did rarely need debt relief."
Walz, a former school teacher, has taken a different approach to student loans, championing programs aimed at easing the burden on individuals pursuing professions like nursing. He signed a student loan forgiveness program for nurses in Minnesota, as well as a free tuition initiative for low-income students.
"As my daughter prepares to head off to college next year, affordability and student loan debt are at the front of our minds," Walz wrote on Facebook in 2018. "Every Minnesotan deserves a shot at a great education without being held back by soaring costs and student loan debt."
The 2024 election is likely to continue shaping the debate on these key economic issues. While both candidates recognize the problems of housing affordability, student debt, and child poverty, their proposed solutions and priorities differ significantly, reflecting a broader ideological divide within the electorate. Ultimately, voters will decide which candidate’s vision aligns best with their priorities and concerns.
