Lawmakers announce agreement to expand child tax credit and business deduction

Of note is Sen. Mike Crapo (R-Idaho), the ranking Republican on the Senate Finance Committee. And Rep. Richard Neal (D-Mass.), the ranking Democrat on the Ways and Means Committee, did not sign the deal. The White House followed suit, issuing a cautious statement of support.

White House Press Secretary Michael Kikukawa told Semaphore: “We appreciate Chairman Wyden and Chairman Smith’s efforts to increase the Child Tax Credit for millions of families and support hundreds of thousands of additional affordable housing units. We look forward to reviewing the details of the agreement.” He remains committed to restoring the coronavirus-era child tax credit, he added.

Neal’s office declined to comment. Crapo told reporters Tuesday night that he is pushing for an increase in the tax deal, which will trigger consideration and amendments by Republican senators in the Finance Committee.

Sen. Todd Young, R-S.C., has been the primary Republican proponent of restoring the Indian R&D tax break. But he suggested parts of the deal, including the child tax credit and business deductions, needed further tweaking to win votes.

“We’re really close,” Young told reporters Tuesday night after leaving a tax deal meeting of Republicans on the Senate Finance Committee. “I think the negotiators have done a good job. It looks like there’s still some work to be done.”

The ongoing legislative maneuvering highlights the hurdles that stand in the way of the framework being built for legislation to reach President Biden’s desk. Wyden said Jan. 29, the start of the 2024 tax filing season, is the deadline to implement this provision into law. Sen. John Cornyn, Republican, Texas. He called it an “artificial” deadline.

At least one leading Democratic lawmaker, Rep. Rosa DeLauro (D-Rep.), said she opposes a deal that would skew most of the tax benefits to U.S. companies. But it drew support from other Democratic bases.

Sen. Sherrod Brown, an Ohio Democrat who is grappling with a tough redistricting campaign, called it a bipartisan “win-win outcome.” Expanding the child tax credit has long been one of his top priorities.

“Six months ago, no one thought we could work together across party lines to deliver an agreement that cuts taxes for working families and supports growth for the middle class,” Brown said in a statement Tuesday morning. . He said: “I look forward to working with colleagues from both parties to quickly finalize this agreement.”