[ad_1]
A nearly $80 billion bipartisan tax deal that combines a temporary expansion of the child tax credit with long-sought pro-business provisions passed the U.S. House of Representatives on Wednesday night, securing a key victory.
The 357-70 vote showed strong bipartisan support for the deal, which is now before the Senate. The political situation in the Senate could be even more complicated, and it is by no means certain that a final vote will send it to Biden’s desk. Nevertheless, Wednesday’s overwhelming passage is likely to prompt proponents of the deal to act quickly to ensure the bill’s provisions go into effect before the current tax filing season begins in earnest.
In a statement ahead of Wednesday’s vote, House Speaker Mike Johnson expressed support for the deal and helped push it forward.
“This bottom-up process is a great example of how Congress should legislate,” he wrote.
The bipartisan vote also comes as members of Johnson’s Republican caucus weigh in on whether to amend the agreement to address issues such as the state and local tax (SALT) deduction and immigration, which are top priorities for high-tax states. The decision came after several days of behind-the-scenes controversy between the parties.
But ultimately, passage of the 83-page bill was achieved using a procedural maneuver known as a suspension of rules, which allowed Republican leaders to block all amendments and pass the two-thirds The bill was quickly passed with majority support. House.
The advancement of the bill, officially known as the American Families and Workers Tax Relief Act of 2024, was a notable victory for Missouri’s Jason Smith, the Republican leader on the House Ways and Means Committee. He negotiated the deal, sold it to his colleagues, and helped push the deal over the finish line in recent days. He called it “a strong, common sense, bipartisan step forward” during the final House debate Wednesday evening.
The deal now goes to the Senate and will be supported by Senate Finance Committee Democratic Chairman Ron Wyden of Oregon, who negotiated the deal with Smith.
Invoice contents
This agreement contains the preferences of the parties.
Republicans want to renew three financial deductions from the 2017 Trump tax cuts that began to be phased out in recent years. These provisions will allow companies to increase deductions for research and development, capital expenditures, interest, and more.
For Democrats, the child tax credit will receive a new expansion, making more tax credits available to poorer families. A report from the progressive Center on Budget and Policy Priorities estimated that 16 million children from low-income households would benefit from this enhancement, of which 500,000 would be above the poverty line. There is.
The agreement includes a wide range of other provisions on issues such as double taxation for companies operating in Taiwan and additional support for disaster-hit communities. The bill would be paid for by implementing pandemic-era changes to the employee retention tax credit.
If passed, the bill would serve as a stopgap of sorts ahead of the 2025 tax debate, which centers on a series of provisions from the 2017 Trump tax cuts that are set to expire on December 31, 2025.
This week’s developments represent a rare example of bipartisan attention in Washington on a deal that has the backing of many in the business community.
The Business Roundtable, a group representing CEOs in Washington, recently said that uncertainty surrounding research and development provisions means that “America’s role as a global leader in innovation is at risk.” said.
Various remaining critics
Wednesday’s vote also showed the deal’s ability to survive criticism.
From the far right, some Republicans were wary of the child tax credit expansion part of the deal. House Freedom Caucus Chairman Bob Good (R-Va.) spearheaded an amendment to the bill that would change the underlying credit and ban illegal immigrants from collecting the credit altogether. It was an idea that almost certainly would have sunk the deal if it had been considered and passed.
Rep. Chip Roy (R-Texas) organized final opposition to the bill on the House floor Wednesday night, focusing on the immigration debate and adding that the child tax credit provision “continues to expand the welfare state.” insisted.
Wednesday’s vote also saw opposition from the left, with 23 Democrats not voting, citing concerns that the expansion of the child tax credit was not enough to offset the business community’s provisions.
But the most persistent opposition has come from moderate House Republicans, who complain that the deal does not address the cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act of 2017. was holding The cap on deductions that taxpayers in high-tax states can take on their federal returns was set at $10,000 in a 2017 law and has been a concern for Republicans in high-tax states ever since.
The issue surfaced Tuesday when some moderate Republicans tried to bring the chamber to a near standstill on an unrelated issue as a way to voice their opposition.The milestone that led to Wednesday’s vote Punch Bowl News reported This was Speaker Johnson’s promise to hold a separate vote next week on adjusting salt deduction limits for married couples.
The just-passed bill will then go to the Senate, where a vote has not yet been decided, but it has strong supporters like Sen. Wyden, primarily to make this provision effective for the upcoming tax filing season. We are asking for prompt action in order for it to be put to good use.
Senate Majority Leader Chuck Schumer, who controls the Senate floor, has not announced a vote but has voiced support for the deal, calling it a “great opportunity to support working families as well as businesses.” There is.
Ben Werschkul is Yahoo Finance’s Washington correspondent.
Click here for business and money-related political news
Read the latest financial and business news from Yahoo Finance
[ad_2]
Source link
