House to vote on major tax bill to expand child tax credit and business interruption

Washington – The House is scheduled to vote Wednesday on a tax bill that would expand the child tax credit and some business tax breaks, a rare and long-awaited bipartisan victory in a divided government.

The law, known as the American Families and Workers Tax Relief Act of 2024, Strengthen child tax credit, which aims to provide relief to low-income households. Although modest compared to the pandemic-era credit enhancements that significantly reduced child poverty and ended in 2021, Democrats are pushing to reinstate the aid and generally see the move as a positive step.

The bill would make it easier for more families to qualify for the Child Tax Credit, increasing the amount per child from $1,600 to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025. It will be raised to Additionally, the limit will be adjusted depending on future circumstances. inflation. At least 500,000 children could be lifted out of poverty if fully activated, according to the Center on Budget and Policy Priorities.

The bill also includes the restoration of tax breaks for businesses, such as research and development credits. These provisions are more palatable to Congressional Republicans, who support expanding the child tax credit and seem reluctant to hand the Biden administration anything seen as a major victory in an election year.

House Ways and Means Committee Chairman Jason Smith (R-Missouri) and Senate Finance Committee Chairman Ron Wyden (D-Oregon) announced an agreement Earlier this month, it touted a “common sense, bipartisan, bicameral tax framework that promotes economic security for working families, promotes growth and American competitiveness, and strengthens communities and Main Street businesses.” did.

“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, improves competitiveness with China, and creates jobs,” Smith said in a statement. ” he said.

The House is proceeding with a vote on the bill Wednesday under a procedure known as a suspension of rules, opting to expedite the bill through a floor vote that requires support from two-thirds of the chamber. The maneuver avoids procedural votes that have proven cumbersome in recent months.

House conservatives have repeatedly blocked votes to approve the bill’s rules in recent months, which typically must be approved before the full chamber can vote on it. The move made the task of House Republican leaders more difficult to pass the bill through the floor, allowing a small group of opponents to effectively shut down the chamber at their discretion.

On Tuesday, a group of New York state moderate Republicans employed this tactic to block a rules vote to protest a tax bill that lacked state and local tax deductions. However, the impasse appeared to be quickly broken after the group met with Speaker Mike Johnson.

Prime Minister Boris Johnson said in a statement Wednesday morning that he supports the bill.

“The American Families and Workers Tax Relief Act is important bipartisan legislation that restores conservative, pro-growth tax reform. Importantly, this bill also completes the wasteful COVID-19 era. program and save taxpayers tens of billions of dollars. Chairman Smith deserves much of the credit for his work.” He received a strong vote of confidence to advance this bipartisan bill to the committee and move it forward this Congress. “We have asked for the relevant bills to be marked up under regular orders at an early stage,” he said. “This bottom-up process is a great example of how Congress should legislate.”