The House Passes Bipartisan Tax Bill to Expand Child Tax Credit
Enhancing Benefits for American Families
January 31, 2024, 8:45 PM ET
A Rare Bipartisan Win
The House voted Wednesday night to pass a bipartisan tax bill aimed at enhancing the popular Child Tax Credit, providing a much-needed boost to millions of American families. Known as the Tax Relief for American Families and Workers Act of 2024, the measure received a strong bipartisan support with a 357-70 vote. However, its fate in the Senate remains uncertain.
Key Provisions of the Tax Bill
If approved by the Senate, the $78 billion tax package would not only increase the child tax credit but also restore critical research and development deductions. The bill also includes provisions for new low-income housing tax credits, disaster tax relief, and tax benefits for Taiwan. Notably, the proposed changes would remain in effect through 2025, coinciding with the expiration of previous Republican tax cuts.
Appreciation for ‘Important’ Legislation
House Speaker Mike Johnson hailed the tax bill as an “important” piece of legislation. In his statement on Wednesday, Johnson described the bipartisan approach in the tax bill’s passage as a prime example of how Congress should make laws.
Outstanding Concerns and Criticisms
Despite overall support in the House, lawmakers still had several issues with the bill. Some House Republicans from New York, including Reps. Nick LaLota, Mike Lawler, Anthony D’Esposito, and Andrew Garbarino, expressed their disappointment with the lack of state and local tax deduction limits, commonly referred to as SALT provisions. Johnson met with these lawmakers to discuss their concerns. On the other side of the spectrum, the bill faced criticism from conservatives in the far-right House Freedom Caucus, like Reps. Bob Good and Byron Donalds. Additionally, many liberal Democrats argued that the proposed bill did not expand the child tax credit enough.
Negotiated Bipartisanship
The bipartisan 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 received approving support from the House Ways and Means Committee, where it passed by a vote of 40-3 on January 19.
The Path Forward
As the tax bill moves forward, it faces a challenging journey through the Senate. Whether the bill can satisfy the diverse interests and overcome potential roadblocks, such as state and local tax deductions or child tax credit expansion, remains to be seen. Nevertheless, the passage of this bipartisan tax bill in the House demonstrates a glimmer of cooperation in the complex and often polarized world of American politics.
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