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House passes bipartisan tax bill without salt deduction
The House of Representatives voted 357-70 to pass a bipartisan tax bill that could affect millions of households. The bill now heads to the politically divided Senate.
WASHINGTON – The House passed a sweeping bipartisan tax bill Wednesday that expands the child tax credit for American families and restores some tax breaks for businesses.
The bill was negotiated between Rep. Jason Smith (R-Missouri), chairman of the House Ways and Means Committee, and Sen. Ron Wyden (D-Ore.), chairman of the Senate Ways and Means Committee. It passed the House on party lines. The vote was 357 to 70.
Broad support in the House was crucial for the bill, as Republicans rushed it through under a tactic known as “suspension.” Bills passed under suspension require two-thirds support, rather than a simple majority. That means the tax plan would need significant bipartisan support in the Republican-controlled House.
Still, the roughly $79 billion bill is fast-tracking its way through the Senate, where Republicans are pushing for it to clear additional hurdles.
“There are issues that need to be resolved,” said Sen. Mike Crapo (R-Idaho), the ranking Republican on the Senate Finance Committee, which handles tax law.
Here’s what you need to know about the bill, which faces big challenges in the Senate, and what it means for parents, business owners and others across the country.
How does this transaction affect me?
The tax law passed Wednesday falls short of the pandemic-era child tax credit increases, but increases the refundable amount to $1,800 per child in 2023, $1,900 per child in 2024, and $1 per child in 2025. The fee is expected to increase to $2,000 per person. We also adjust the inflation values for 2024 and her 2025.
However, this law applies beyond parents. It would also create tax breaks for people affected by natural disasters and strengthen housing tax credits for low-income people. The bill also includes extending tax breaks for businesses until 2025 and providing benefits to support trade with Taiwan.
The tax reductions in the agreement would be funded by eliminating the employee retention tax credit. The provision was meant to help companies keep employees on payroll during the pandemic, but it has since been found to be rife with fraud.
Who are the members of Congress who oppose this bill?
Ultra-conservative lawmakers strongly opposed the bill, citing the expansion of the child tax credit. These Republicans argued that the child tax credit should also apply to illegal immigrants.
However, the child tax credit does not provide any new benefits to illegal immigrants; it merely increases existing benefits for households that already receive the credit. Only children with Social Security numbers can benefit from this bill.
Meanwhile, progressive lawmakers also voiced concerns about the bill, saying it doesn’t go far enough to expand tax credits and gives businesses an unfair advantage.
“The tax deal fails when it comes to fairness,” House Appropriations Chairwoman Rosa DeLauro (D-Conn.) said in a statement earlier this week. “At a time when a majority of American voters believe that taxes on big corporations should go up, there is no reason why we should give them tax breaks while giving families pennies,” she said.
Last-minute fight in the House of Commons
The bill did not pass in the House without some prior drama. A small number of moderate New York House Republicans expressed alarm that the bill did not include reforms to state and local tax credits that are popular with voters.
These moderates borrowed strategies from their conservative colleagues who have repeatedly crippled the House in recent months, blocking unrelated votes and threatening to freeze legislative action. But when Republican leaders promised to discuss reforming the program, the lawmakers walked out.
The group met for several hours Tuesday evening with House Speaker Mike Johnson, R-Louisiana, and agreed to “continue to work with members to find a path forward on legislation” related to tax credits, Johnson said. His publicist, Taylor Halsey, told US. In today’s statement.
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