The House Republicans’ push for a $78 billion tax deal, including business incentives and an expanded child tax credit, has now been approved by the White House and the Ways and Means Committee. The crucial House floor vote is set after bipartisan approval in the House Ways and Means Committee.
GOP Dilemmas
Speaker Mike Johnson faced opposition within his party, both from hardline conservatives and moderate New York Republicans concerned about the absence of measures rolling back the Trump-era $10,000 limit on SALT.
The Child Tax Credit Boost
The potentially groundbreaking bill would see a rise in the child tax credit from $1,600 to $2,000, adjusted annually with inflation.
A Positive for Larger Families
A rise in the child tax credit would provide families with refunds for surplus amounts and give faster access to those with multiple children.
Business Boost: R&D and Equipment Deductions
Support From the White House
“We are pleased that the House Ways and Means Committee has advanced a bipartisan tax bill that will increase the Child Tax Credit for millions of families,” were the words of White House spokesperson Michael Kikukawa, who endorsed the bill.
Presidential Endorsement
“While the President will continue the fight to restore the full expanded Child Tax Credit,” Kikukawa said, “the bipartisan bill is a welcome step forward, and Congress should pass it.”
Opposition and the GOP Divide
Senator Thom Tillis opposed the deal, deeming the pay-fors as ‘phony,’ which was agreed with by Senator John Cornyn, who said, “I think he’s got a good point,” revealing the growing rift within the Republican party.
The $78 Billion Deal Origins
The $78 billion deal, offsetting costs, emerges from negotiations led by House Ways and Means Chairman Jason Smith and Senate Finance Committee Chairman Ron Wyden.
Democratic Skepticism
Rep. Rosa DeLauro, a Connecticut Democrat, didn’t support the deal, arguing that “millions of kids will be left behind.” This was agreed with by Top Democrat Richie Neal, showing a potential spanner in the works that could see the deal fall through.
Concerns That Children Are Left Out
Colorado Democratic Sen. Michael Bennet said he was “disappointed their proposal isn’t a return to the American Family Act, eighty percent of children currently left out of the full Child Tax Credit will benefit from this deal.”
Expanding the Tax Credit Reach
The deal also looks to extend the housing tax credit, potentially helping millions of underprivileged kids, “I support this bipartisan tax framework because it makes important progress to expand the child tax credit,” said Chuck Schumer.
Keeping up With China
Schumer also believes that the deal “helps address our affordable housing crisis and helps keep U.S. businesses competitive against the Chinese Communist Party.”
Disaster Tax Relief
In a world where global warming is causing a rise in extreme weather, flooding, and train derailments, natural disaster relief could become essential for those who can’t afford renovations.
It’s also a huge part of the deal, which has caused even more criticism and division from climate change skeptics.
Congress Challenges
Not only is Congress busy with this bill, but it also has to deal with the absence of a year-long spending plan that could result in a government shutdown and the division on aid relief for Ukraine and Israel.
A Potential Bipartisan Victory
The tax deal emerges as a potential bipartisan victory in an election year, “As everyone knows it takes bipartisan support to get things done so I hope our Republican Senate colleagues are willing to work with us to keep this process going,” urged Schumer.
Republican Support Looking Promising
In response to this, the top Republican on the finance committee said in a statement, “I will continue working with my Senate colleagues to build broad, bipartisan support for a tax package that provides appropriate relief for working families and businesses.”
A Positive Impact on Child Poverty
The Center on Budget and Policy Priorities estimated that the child tax credit provisions could lift up to 400,000 children above the poverty line.
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