Congress could soon release a bipartisan tax bill that would bring back the child tax credit and the business deduction
- The roughly $70 billion package would revive the tax credit that President Biden expanded for lower-income families in 2021 and which expired amid GOP opposition
- The deal’s framework would include $35 billion for child tax credit expansion and $35 billion for business tax credits
Congress is moving toward a bipartisan tax bill that would expand child tax credits and bring back popular business deductions.
The roughly $70 billion package would revive the tax credit that President Biden expanded for lower-income families in 2021 and which expired amid opposition from the Republican Party.
The framework of the deal so far would include $35 billion for child tax credit expansion and $35 billion for business tax credits.
The main sticking point is Democrats’ insistence on including an expansion of the low-income housing tax credit in the bill, according to a source involved in the talks. The provision has the support of some Republicans, but right-wing conservatives worry about its costs.
House Ways and Means Chairman Jason Smith, R-Mo., drafted the deal with Senate Finance Chairman Ron Wyden, D-Ore.
Republican Ways and Means Chairman Jason Smith, Mo., has been working with his Democratic Senate counterpart, Finance Committee Chairman Ron Wyden, Ore.
But even if they can agree on a framework, the bill would likely fall to the back of the list of priorities in Congress. It would be quite a task to get the broken House on board with any tax framework.
“This tax deal is going nowhere – fast,” a senior staffer for a committee member told DailyMail.com.
Top Ways and Means Democrat Richie Neal suggested Democrats on his committee weren’t happy with the deal in its current form, arguing the child tax credit wasn’t big enough.
“I think the agreement that Ways and Means Democrats have is against it in its current form,” he countered reporters.
As part of Biden’s American Rescue Plan, the child tax credit was expanded to low-income earners who don’t pay income taxes, giving access to millions of people who previously didn’t qualify for funding. The tax credit was increased from $2,000 to $3,600 for children under six and $3,000 for children between six and eighteen.
Any tax deal would likely be in line with government funding, with a partial government shutdown deadline next week, and the comprehensive deal in the works to secure the border and fund Israel and Ukraine.