The bill would fund a $33 billion expansion of the child tax credit, along with $33 billion in business credits and other provisions. Employee Retention Tax Credit (ERC)a pandemic-era tax break to help businesses that don’t lay off workers.
But Republicans argue that shifting spending from one tax credit to another won’t actually balance costs in the long run.
“It’s a kind of fake toll“This is because the original tax credits made during the pandemic were not paid out,” said Sen. John Cornyn (R-Texas). So it seems like smoke and mirrors to say now that unpaid tax credits can be used to pay for this. ”
“I certainly support the Finance Committee holding hearings and raising prices, but I’m not going to just do it.” Please press the rubber stamp” Cornyn added.
Republicans also want the expanded CTC to be tied to more policies.
strict labor requirementswhile Democrats say the tax bill is too weighty. For business.
“the
compromiseAnd some on our side think that there is a mix of tax incentives for businesses and tax incentives for businesses. [child tax credit] That’s not their preference,” Sen. Tim Kaine (D-Va.) said Thursday.
Kaine said he remains “very inclined to support” the bill, but some of his progressive colleagues remain unconvinced.
The Hill’s Tobias Barnes and Alice Foley have more here.
