House set to vote to expand child tax credit, beef up corporate tax breaks – The Washington Post

The House of Representatives is preparing to vote Wednesday on tax cuts for working families and the restoration of some corporate tax breaks, putting the bill on President Biden’s desk before tax filing season ends in April. It’s part of the rush.

The bill would expand child tax credit eligibility for the lowest-income families and adjust payments for inflation for tax filing years 2024 and 2025. It would also strengthen certain business tax credits, including deductions for research and development, interest expense and capital expenditures, that had been capped to limit the overall cost of President Donald Trump’s 2017 Tax Cuts Act.

Tuesday’s bickering among House Republicans threatened to derail the bill, with Rep. Jason T. Smith (R-Missouri) and Sen. Ron Wyden (R-Missouri), the chairs of Congress’ tax-writing committee, threatening to derail the bill. (D-Ore.) spent seven months negotiating the bill. .

Republicans in politically vulnerable New York districts are teaming up with conservative members of the House Freedom Caucus to aim for this fall, sinking procedural votes in the House and stalling business in the chamber. I’m threatening to do it.

New Yorkers (Anthony D’Esposito, Nick Larota, Michael Lawler, and Andrew R. Garbarino) have not removed the $10,000 cap on state and local tax deductions that filers can deduct from taxes they pay to the state. , opposed this bill. and local governments receive reimbursement from the federal government. The deduction, known as “SALT,” is widespread in high-tax states, and the limit was also imposed in the 2017 Trump tax law.

On the other side of the political debate, some members of the Freedom Caucus oppose the Child Tax Credit provision, likening it to welfare expansion.

Protests on the House floor prompted the group to meet with House Speaker Mike Johnson (R-Louisiana) late Tuesday night. But the speaker remained largely unmoved, pressing ahead with plans to put the bill to a vote under a suspension of House rules that would require a two-thirds majority for passage. The Republican objection is that the bill must rely on Democratic votes to become a reality, as it has had to do with every major bill since Johnson took over in October. means.

Johnson’s push comes after weeks of debate within Republicans in both chambers of Congress over whether to move forward with the bill. The business provision is a priority across the caucus and has strong support among Democrats, but at least some Senate Republicans have expressed concern that millions of American households would receive greater tax benefits during the election. They complain that it makes little sense to give Mr. Biden the opportunity to take credit for what he has done. According to two people familiar with the matter, who spoke on condition of anonymity to discuss the private talks.

On social media, conservative and right-wing accounts also spread false claims that the bill would allow undocumented immigrants to claim child tax credits. That’s not true, and the legislation doesn’t change the provision requiring a Social Security number to access benefits, but the concerns are echoed by far-right lawmakers on Capitol Hill, including House Freedom Caucus Chairman Bob Good. (R-Va.) told reporters:he will not support “Child Tax Credit applies to illegal aliens.” House Ways and Means Chairman Smith responded to these criticisms, emphasizing in a social media post that the bill would not change the number of immigrants who claim the credit. .

Conservative advocacy group Heritage Action on Monday called on lawmakers to oppose the bill in an email, saying it would give out too much money to families who aren’t working. “The bill’s cash welfare benefits are socially harmful and serve as a stepping stone to President Biden’s jobless ‘child benefits,'” the email said.

But there has been growing momentum from outside groups and business lobbies to enact the change. During a closed session earlier this week of the Republican Study Committee, made up of conservative House Republicans, some advocacy groups voiced support for the bill. Grover Norquist, president of the anti-tax group Americans for Tax Reform, likened tax cuts to sex and argued that even if they weren’t as good as they could be, they were still worth it. Pro-life groups also support the measure.

“There’s no good reason to vote no,” Norquist said. “This is a powerful pro-growth tax cut. …What’s not to like about Republicans?”

Also significant was the decision of one particularly prominent Republican to not oppose the bill, at least for now. Trump appeared to have helped kill compromises emerging in the bipartisan Senate on immigration and Ukraine, and many Republicans would have opposed them if he had also voiced opposition to the tax deal. It might have been. An unsigned eight-page PDF circulated among congressional Republican offices appears to have been written to persuade Trump supporters not to support the deal, according to a copy of the memo obtained by The Washington Post. That’s what it means.

“President Trump and his ability to deliver bigger and better tax cuts should not be undermined,” it read.

But Norquist and other supporters of the bill have argued to Trump’s advisers that the deal represents a victory for the former president, with Democrats joining Republicans in expanding Trump’s key policy initiatives. claimed to be equal. As of Wednesday morning, the former president had not considered the measure.

Marianna Sotomayor and Theodoric Meyer contributed to this report.



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