House passes $78 billion tax bill in bipartisan vote

The House passed a $78 billion tax bill Wednesday that expands the child tax credit and reinstates business deductions canceled during the Trump administration, sending the bipartisan, bicameral bill to the Senate for consideration. .

Congress passed the bill, called the Tax Relief for American Families and Workers Act, by an overwhelming bipartisan vote of 357-70.

Passage of the bill, authored by House Ways and Means Committee Chairman Jason Smith (R-Missouri) and Senate Finance Committee Chairman Ron Wyden (D-Ore.), reflects bipartisanship in this Congress. This was a rare example. It is defined by intense partisan conflict and has been labeled as highly counterproductive.

“The numbers speak for themselves. They show that people come together to serve the American people, and that’s what we saw today,” Smith said, cheering after voting. He entered the office with his staff and spoke to reporters.

This session is also one of the few instances in which non-essential legislation, that is, legislation that is not needed to keep the government running, may be enacted. Senate Minority Leader Chuck Schumer of New York said Wednesday that he supports the tax bill and is working with Mr. Wyden “to find the best way forward.”

But approval was not unanimous, with conservative Republicans, progressive Democrats, and some moderate New York Republicans expressing opposition to the bill, which attracted some “no votes.” Resistance from Empire State lawmakers furious that the bill did not include an increase in the state and local tax (SALT) deduction led to a near-insurrection on the House floor on Tuesday, reflecting anger within the group. It’s an expression.

Hardline Republicans first took aim at expanding the child tax credit, arguing that the provision would grow the “welfare state.” The bill also aligns with the 2017 tax bill enacted under the Trump administration, which would allow families of undocumented immigrants to continue receiving benefits. insisted. Parents can receive benefits.

“Unfortunately, as is often the case in this town, this bill contains provisions that, frankly, the people I represent are fed up with it,” said a member of the Conservative House of Commons Freedom Caucus. Rep. Chip Roy (R-Texas) said on the House floor. Wednesday floor.

“And, as The Wall Street Journal editorialized, this is a provision that continues to expand the welfare state, expanding the child tax credit in a way that continues to directly fund people through refundable credits. “We think there is a problem with this, and we think this undermines economic activity, the drive to work and the drive to create value, which we think is so important to economic growth.” added.

They were also unhappy that Republican leaders brought the bill to the floor under a suspension of rules. The fast-track process would require a two-thirds majority to pass, but it would also avoid having to first pass rules that the bill’s Republican opponents would worry about. Got into the tank.

Progressive Democrats, on the other hand, argued that the bill favors corporations over those eligible for the child tax credit. Rep. Rosa DeLauro (D-Conn.), ranking member of the House Appropriations Committee, lamented the “inequity” between corporate benefits and benefits provided to households under the child tax credit. .

He said businesses could benefit “immediately” but “the child tax credit needs to be phased in.”

“There’s inequality. They’re moving toward big business saying, ‘You can have everything you want, and more,'” she told Congress on Tuesday. He spoke to reporters at the Capitol. “The child tax credit is a proven system. [corporations] If you bought stock options, they buy them back. ”

The bipartisan, bicameral tax bill would increase the child tax credit by increasing the maximum credit from $1,600 to $2,000 per child by 2025, adjusting for inflation in 2024 and 2025. This is a content that will be strengthened.

It also calls for raising the cap on the low-income housing tax credit by 12.5% ​​by 2025 and lowering the threshold for bond-financed buildings to qualify for the low-income housing tax credit.

The bill also reinstates three business deductions that were repealed in the 2017 Tax Cuts and Jobs Act, the Trump administration’s most important legislative accomplishment, allowing companies to pay for R&D annually instead of five years. This also includes making it deductible. .

It also creates a carve-out for Taiwanese companies to prevent double taxation on companies with employees in the U.S. and Taiwan, as well as for victims of wildfires and the Norfolk Southern train derailment in East Palestine, Ohio. This will reduce taxes. , which allows disaster relief payments not to be counted as taxable income.

Moderate Republicans in New York state had been critical of the bill ahead of the vote, but by Wednesday night most had voted in favor. Representatives Anthony D’Esposito (RN.Y.) and Nick Larota (RN.Y.), who represent districts on Long Island, voted “no.”

Lawmakers in the Empire State were furious that the tax bill did not include an increase in the SALT deduction, which was a central issue throughout Congress. They sent a warning shot Tuesday to Speaker Mike Johnson (R-La.) and Republican leadership, enough to halt legislative activity on the floor before switching votes and proceeding with business as a debate on the topic. He opposed the unrelated procedural vote. Things continued.

These New Yorkers flocked to Mr. Johnson late Tuesday night. Two sources told The Hill on Wednesday morning that lawmakers and leadership have agreed to pass a SALT bill within the next week. But Johnson’s aides have since hit back, saying that while there was a promise to continue discussing the issue, there was no concrete timetable or details for the bill, which would need buy-in from other parts of the council.

“There was a promise to work with integrity,” Rep. Andrew Garbarino (RN.Y.) said Wednesday.

Mike Lillis contributed.

Updated at 8:59 p.m.