White House backs $78B bipartisan child tax credit and business tax bill

The Biden Administration Urges Congress to Pass Bipartisan Legislation to Expand⁤ Child Tax Credit and ⁣Renew Investment Deductions

The Biden administration is ⁣calling on Congress ⁢to pass ‌bipartisan legislation that would expand the child tax credit and renew ​investment deductions that are highly⁣ valued by the business sector. The bill, which received overwhelming support in‍ a 40-3 vote ‍from⁣ the Ways and Means Committee, is ⁤seen as a crucial step⁤ in lifting hundreds of thousands of children out of poverty.

A White House spokesman, Michael Kikukawa,‌ expressed satisfaction with the proposed tax package, highlighting that it is fully funded by other revenue measures, aligning with President Biden’s commitment to fiscal responsibility. While ‍the president continues to advocate for the restoration of the full expanded child tax credit that significantly reduced child‌ poverty, he sees the bipartisan ⁣tax bill as a positive step⁣ forward and urges Congress ​to pass it.

The Tax Relief for ⁤American Families and Workers ‍Act

The legislation, known as the Tax Relief ‌for American Families and Workers Act, was negotiated by Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron⁤ Wyden (D-OR). It ‍not only expands the ‌child tax credit but ‍also renews essential ‌business‍ tax provisions that⁣ had expired.

Although there were concerns⁣ about the bill’s potential challenges in the passage process, ​the fact that⁣ 93% of the‌ tax-writing panel supported it is a promising sign for its prospects on the House and Senate floors. Furthermore, President Joe Biden’s endorsement could garner broader Democratic support, increasing the likelihood of‍ the bill’s‍ passage.

This agreement presents Democrats with the best​ opportunity to expand the child tax‌ credit before the next Congress. Additionally, Republicans may struggle to restore the business provisions they prioritize without⁣ the passage‌ of this legislation.

Enhancements to the Child Tax Credit

The bill enhances the child tax credit by making ⁢it more⁣ generous through changes in the calculation of the credit on a per-child basis. It also increases the maximum refundable⁢ amount per child to $1,800 in ⁤tax year 2023, $1,900 in​ 2024, and $2,000 in 2025.

Refundability, which allows‍ households with no tax liability to receive ‍a check from the​ government, is a key aspect of the proposal. The current cap⁢ of $1,600 on‍ the refundable portion of the credit would be raised, benefiting lower-income families who pay minimal or no income taxes.

However, the White House acknowledges that this legislation⁢ falls short of the temporary child tax credit expansion included in the 2021 American Rescue Plan Act, the Democratic pandemic relief bill. The previous expansion raised the ⁢credit⁢ to $3,600 for children under 6 and $3,000 for older children, eliminating the income ⁢threshold requirement.

It remains uncertain when the House, reconvening on January 29, will vote on the legislation. House Speaker ​Mike Johnson‍ (R-LA), ‍preoccupied with avoiding a government‍ shutdown, has not made any⁣ public statements regarding the Wyden-Smith bill.

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What is the significance of making the child tax credit fully refundable and how does ⁢it address income inequality?

Sential investment deductions that encourage business growth and job creation. The ‍bill aims ⁢to provide much-needed relief to American families ⁤and workers who have been greatly impacted by the ongoing COVID-19 pandemic.

The expansion of the ⁢child tax credit is of utmost importance to the ​Biden administration. By increasing the credit from ⁤$2,000 to‌ $3,000 ⁣per child aged 6 to ‍17, and $3,600⁢ for children ⁢under 6, it is estimated that the ⁣legislation will benefit approximately 88% of children in the United ⁤States. This will help alleviate the financial burden on ⁣families struggling to make ends meet and bolster economic stability for future generations.

Additionally, the legislation ⁣includes a provision⁢ that makes the ⁣child tax credit fully refundable, allowing lower-income families to receive the full benefit ‍of the credit. This is crucial in addressing income inequality‌ and ensuring that⁤ all children have access to adequate resources and opportunities for⁤ their development.

Furthermore, the ‌bill seeks to renew essential investment ⁣deductions that are highly valued by the business sector. These deductions, such as ⁢the Research and Development Tax Credit and the Work Opportunity ‍Tax Credit, incentivize businesses to invest in research, development, and job creation.‌ By renewing these ⁤deductions, the legislation aims to stimulate economic growth and create new employment opportunities.

The bipartisan⁢ support for this bill is a testament to its importance and potential impact. Members of both parties recognize the significance⁤ of investing ‌in children ⁣and families, as well as in the business sector, to drive economic‍ recovery and long-term prosperity. The overwhelming support from the Ways⁣ and Means Committee signifies that there is broad consensus on the​ need to pass this legislation.

President Biden ‌and his administration‌ are urging⁤ Congress to seize⁤ this opportunity and pass the Tax Relief for American Families⁤ and Workers Act. By doing so, they would be taking a significant ⁣step⁣ towards reducing child poverty, providing much-needed⁣ relief to families,⁢ and incentivizing business growth. This⁣ legislation ​aligns with ⁢President Biden’s vision of ⁤building back a stronger and fairer economy, ensuring ‌that no one is‍ left ​behind in the process.

In conclusion,⁣ the Biden administration’s call for Congress to pass ​bipartisan ⁢legislation to expand the child tax credit and renew investment deductions is a‍ crucial step towards lifting children out of⁣ poverty and promoting economic recovery. The Tax Relief for American ⁢Families and Workers⁢ Act presents a unique ​opportunity to ⁢address the⁤ challenges faced by American families and businesses, and⁤ it is imperative that Congress⁣ acts ⁢swiftly to pass‌ this legislation. By doing so, they would be making a significant investment ⁢in the future of our nation and demonstrating a commitment to the well-being of its citizens.

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