Posted on 01/16/2024 7:58:43 AM PST by Red Badger
The bipartisan agreement between the House and the Senate tackles priorities for both parties.
WASHINGTON — Senior lawmakers in Congress announced a bipartisan deal Tuesday to expand the child tax credit and provide a series of tax breaks for businesses.
The $78 billion tax agreement between House Ways and Means Chair Jason Smith, R-Mo., and Senate Finance Chair Ron Wyden, D-Ore., caps months of negotiating and pursuing common ground in the divided Congress.
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs," Smith said in a statement. "We even provide disaster relief and cut red tape for small businesses, while ending a COVID-era program that’s costing taxpayers billions in fraud."
The deal, details of which were reported earlier by NBC News, would enhance refundable child tax credits in an attempt to provide relief to families that are struggling financially and those with multiple children. It would also lift the tax credit's $1,600 refundable cap and adjust it for inflation.
The new child tax credit policy would benefit about 16 million kids in low-income families, according to an analysis by the liberal-leaning Center on Budget and Policy Priorities. “The expansion would meaningfully reduce child poverty,” CBPP wrote. “In the first year, the expansion would lift as many as 400,000 children above the poverty line. 3 million more children would be made less poor as their incomes rise closer to the poverty line.”
Democrats had demanded a larger child tax credit after an earlier version they passed for less than one year expired, causing child poverty to fall and then rise again after it lapsed. The new agreement would provide smaller benefits than the monthly payments under the American Rescue Plan.
“Fifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead,” Wyden said in a statement.
Republicans were motivated to revive some expired portions of the 2017 Trump tax cuts for businesses. The deal includes expensing for research and experimental costs, restoration of an earlier interest deduction, an expansion of small-business expensing and an extension of bonus depreciation, according to a section-by-section summary released by the Ways and Means Committee.
Wyden has said he hopes to pass the deal by the beginning of tax filing season, which is Jan. 29. That's not assured as Congress is juggling other priorities, most notably averting a government shutdown at the end of this week and completing its funding process by March. If it passes, it would be a rare success story of active legislating on a politically sensitive issue by a divided Congress that has so far been historically unproductive.
"My goal remains to get this passed in time for families and businesses to benefit in this upcoming tax filing season, and I’m going to pull out all the stops to get that done," Wyden said Tuesday.
Election Year Vote Buying Scheme #149.
Right on schedule.................
More likely 15 million parents will be getting a new Iphone 15 or big screen TV....
All he can do is ‘earmark’..............
TAX CREDITS??? BS!!!
90% of these so-called tax CREDITS go to ADULTS who don’t even try to work, pay no income taxes at all and use the money for their own enjoyment. It’s merely an additional government stipend to go along with many others they receive.
The other 10% goes to people who need it and to whom we should extend a helping hand in some other way.
Hooray! More handouts. I’ll cheerfully be paying the bill
“low-income families will be better off as a result of this plan...”
You’d think that $20 trillion later that all these low-income families would be living in Beverly Hills by now.
If “better off” means multiple generations living on government welfare and not making it on their own, then yes, they are “better off.”
But, if you define “better off” as getting off the government teat and being a successful, contributing citizen, then none of these families is better off.
The national debt is out of control and eventually will crash the economy and take the government down with it.
They might as well partee while they can!
This bill has succeeded already.
After all, it gave NBC the opportunity to praise Ron Wyden (Kleptomaniac-OR) and make it look like he is fighting the Pubbies.
TV airtime is good airtime.
The bill? Much ado about nothing.
I do predict an increase in the price of drugs as dealers realize that these folks have another few hundred to spend.
And if a few hundred dollars can raise 15 million “children” out of poverty, then the statistics were flawed to start.
In exchange for the handout to low income workers, democrats have agreed to reinstate certain corporate deductions for interest expense and research and development costs and funding will come from unspent COVID money that was earmarked for companies to help retain employees.
I seriously doubt this passes the Senate especially considering we are racing just to keep government open
Considering that most of the children now being born in the US do not even have American* parents - this was, yet another, TOTAL SELLOUT by the GOP.
*as in non-welfare, non-immigrant parents
THIS IS OUTRIGHT DISCRIMINATION AGAINST THOSE WHO DO NOT HAVE CHILDREN.
Let them have free birth control pills & cease their having kids they cannot support.
NOT MY JOB TO SUPPORT THEM.
3 million more children would be made less poor as their incomes rise closer to the poverty line.”
but it sounds good.
Tax credits = free money
If you give me $1, I will be ‘less poor’ that I was before you gave me the dollar...............
More ‘tax reimbursements’ for people that don’t pay taxes ?
Yep, ‘Earned Income Credits’..............just a different name............
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