Senior lawmakers from both parties announced a deal to revive some expired Trump-era tax breaks for businesses and expand the child tax credit.
The $78 billion tax deal was announced by House Ways and Means Chair Jason Smith (R-Mo.) and Senate Finance Chair Ron Wyden (D-Ore.). The bill still needs to be written up and the votes secured to pass it, but the fact that both parties could reach any agreement at all is remarkable considering the toxicity in Washington.
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs,” Smith said in a statement.
“Fifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead,” Wyden stated.
But Joe Biden is already looking to blow it up. Biden “remains committed to fighting for the full expanded Child Tax Credit” that he fought for as part of the 2021 "American Rescue Plan" law and that Republicans deemed ruinously expensive.
The full credit is $3,600 for each child under age 6 and $3,000 for each child ages 6 to 17. Its price tag is $1.6 trillion over the next ten years. The partial credit is more modest but would still cost around $700 billion over 10 years.
The deal, details of which were reported earlier by NBC News, would enhance refundable child tax credits in an attempt to provide relief to families that are struggling financially and those with multiple children. It would also lift the tax credit's $1,600 refundable cap and adjust it for inflation.
The business tax breaks are also modest.
Republicans were motivated to revive some expired portions of the 2017 Trump tax cuts for businesses. The deal includes expensing for research and experimental costs, restoration of an earlier interest deduction, an expansion of small-business expensing and an extension of bonus depreciation, according to a section-by-section summary released by the two tax-writing committees.
“The agreement announced today by Chairman Smith and Chairman Wyden is a thoughtful starting point for the House to begin the process," Sen. Mike Crapo (R-Idaho), the top Republican on the Finance Committee, said in a statement. "I will continue working with my Senate colleagues to build broad, bipartisan support for a tax package that provides appropriate relief for working families and businesses.”
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The left is whining about "tax breaks for the rich" and the right is complaining about another massive expense that the government can't afford. We'll see what happens after the bill is written and submitted.
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