The House of Representatives approved a $78 million fiscal package on Wednesday. In an overwhelmingly bipartisan vote, lawmakers approved language that would expand the Child Tax Credit and restore several business tax breaks. It will now move to the Senate, where the parties are expected to be more divided.
The legislation, dubbed the Tax Relief for American Families and Workers Act, was passed through the House with 357 votes in favor and 70 against, thanks to the bipartisan efforts of Jason Smith (R-MO), chairman of the Ways and Means Committee, as well as Ron Wyden (R-OR).
Most of the negative votes came from the most conservative wing of the Republican Party, the most progressive wing of the Democratic Party and some moderate Republicans in New York.
The Tax Relief for American Families & Workers Act locks in $600 billion in pro-growth, pro-worker, and pro-American tax policies.
Passing this bill will restore key provisions of the 2017 Trump Tax Cuts. pic.twitter.com/kLBbYeNAYS
— Rep. Jason Smith (@RepJasonSmith) January 31, 2024
“The numbers speak for itself, it shows that when you’re trying to deliver for the American people, people will join together and that’s what we saw today,” Smith said after the vote.
“Most prognosticators would have told you as recently as a month ago that this bill was destined to die in negotiations or collect dust on a shelf if it ever got introduced. Given the sorry state of our political climate, it’s a real victory to have such strong momentum behind this bill that will help 16 million American kids from low-income families get ahead,” Wyden said.
What does the tax package do?
The main incentive for Democrats was the expansion of the Child Tax Credit, while Republicans were satisfied with the implementation of tax exemptions for companies. The bill would increase the maximum credit per child from $1,600 to $2,000 through 2025, adjusting for inflation in 2024 and 2025.
As for business exemptions, it covers three business deductions that were disallowed in the Tax Cuts and Jobs Act of 2017.
In turn, the fiscal package includes relief for companies operating in the United States and Taiwan, a major source of computer chips for the United States, a boost to affordable housing tax credits, and increased disaster relief for victims of major federal disasters.
