After long negotiations, the House is set to vote Wednesday night on a bipartisan tax bill that would enhance the popular Child Tax Credit to benefit millions of American families.
The $78 billion tax package called the Tax Relief for American Families and Workers Act of 2024 would increase the child tax credit and restore critical research and development deductions. It includes new low-income housing tax credits and disaster tax relief and tax benefits for Taiwan. If passed, the changes would be in effect through 2025 when previous Republican tax cuts expire.
House Speaker Mike Johnson said in a statement Wednesday that the tax bill is "important" legislation.
"This bottom-up process is a good example of how Congress is supposed to make law," Johnson said.
Despite overwhelming support for the bipartisan bill in the House, there are still several issues lawmakers have with the legislation, including the child tax credit and state and local tax deductions.
Several New York Republicans (Reps. Nick LaLota, Mike Lawler, Anthony D'Esposito and Andrew Garbarino) were angered that the tax bill does not have state and local tax deduction limits -- also known as SALT provisions. This is a top priority for New York lawmakers. Johnson met with this group late Tuesday to discuss SALT provisions.
Meanwhile several conservatives including members from the far-right House Freedom Caucus (Reps. Bob Good and Byron Donalds) criticized the bill for expanding the child tax credit. Many liberal Democrats will vote against the bill because they argue the bill does not expand child tax credit enough.
Clearly not all lawmakers will get what they want. However, this legislation -- if passed in the House -- would be a rare bipartisan win.
The tax bill was negotiated by Senate Finance Committee Chair Ron Wyden of Oregon and House Ways and Means Committee Chair Jason Smith of Missouri. It passed with bipartisan support out of the House Ways and Means Committee on Jan. 19 by a vote of 40-3.
The vote, which GOP Whip Tom Emmer set for 8 p.m., will be fast-tracked and voted on under suspension of the rules, which requires two-thirds vote to pass.
The bill's fate is uncertain in the Senate.
House to vote on bipartisan tax bill that would expand child tax credit originally appeared on abcnews.go.com