- The House passed a bill that would strengthen the child tax credit and provide tax breaks to businesses.
- The bill is an unusual bipartisan effort and could lift hundreds of thousands of children out of poverty.
- It now heads to the Senate for a final vote.
The House of Representatives just passed the bill. Expand child tax creditbrings peace of mind one step closer to parents.
On Wednesday night, the House passed the American Families and Workers Tax Relief Act of 2024 by a vote of 357-70. The goals include expanding the child tax credit, implementing low-income housing credits and disaster relief, and reducing taxes on corporate research and development.
The bill received bipartisan support, including support from House Speaker Mike Johnson. said in a statement Wednesday. This is “an important bipartisan bill to restore a conservative, pro-growth tax system.”
“This bottom-up process is a great example of how Congress should legislate,” he said.
The bill, an unusual bipartisan feat, would increase the child tax credit and provide Republican-leaning tax breaks for companies that invest in research and development, among other things.
The refundable child tax credit is expected to increase from $1,600 to $1,800 per child in 2023 and to $2,000 by 2025.In the first year of the bill alone, the left Focus on estimating budget and policy priorities It would lift up to 400,000 children out of poverty. By the time it is fully implemented, 500,000 children will be above the poverty line.
Households that would benefit from this proposal would see it in 2023. According to one report, taxes were reduced by $680. Estimate from Tax Policy Centerjust over half of the lowest-income households received a tax break.
The White House also urged Congress to pass legislation to provide tax relief to American families as soon as possible. White House press secretary Karine Jean-Pierre said in a press briefing last week that the bill “is a welcome step forward and we believe Congress should pass it.”
“This is for millions of families,” Jean-Pierre said. “The bipartisan agreement will also lift hundreds of thousands of children out of poverty and help build hundreds of thousands of affordable rental housing units.”
The bill would not have passed without opposition from conservatives. Some Republicans were upset about the expansion of the child tax credit as tax policy moved forward, while other conservative priorities remained stalled.
“I’m tired of the gutless cowards in Washington. Do you know what we’re going to announce next week?” Republican Rep. Chip Roy Said FOX Radio host Jimmy Failla last week. “It’s a corporate tax cut bill. Because Republicans are endless wars and corporate whores. That’s it. That’s what they say.”
The bill is now likely to pass in the Senate.
