House-approved child tax credit and business bill encounters hurdles in Senate

The $78 Billion Child Tax Credit ​and Business⁤ Tax ⁣Bill⁢ Faces⁣ Challenges in the Senate

The bipartisan bill ‍aimed at‌ providing tax relief for American families and workers has successfully passed the House with ⁣overwhelming⁤ support. However, its journey ⁤through the Senate may not be as ⁤smooth.

Crafted by Chairman Jason ​Smith and Chairman Ron Wyden, the bill, known as​ H.R. 7024, has garnered skepticism from Republican senators. Their‌ concerns primarily revolve around the expansion of the⁣ child tax credit, which some conservatives argue could lead to an increase in welfare dependency‌ and discourage ‍work. Additionally, there are objections related to the bill’s impact on⁣ the deficit.

Any changes made to the bill could jeopardize the bipartisan support⁢ it currently enjoys. G. William Hoagland, senior vice president at the Bipartisan ​Policy⁢ Center, acknowledges the challenges ahead, stating, ‌”I see lots of ⁤issues in the Senate, and this is not a slam ⁣dunk.”

Senate Finance Committee’s top Republican, Senator Mike Crapo, has expressed the need for the panel to conduct its own markup of ‍the bill. This‌ process would allow senators⁣ to⁣ propose⁤ amendments, ‍potentially delaying ​the bill’s passage.

One ⁢of the concerns raised by GOP senators, including Senator Crapo, is the provision that‌ allows parents to use the previous​ year’s income ‌to ‌calculate the ​child tax credit for the current and following years. Critics argue that this could lead ⁣some parents to leave‍ the workforce. ‍The⁤ Wall Street Journal editorial board has also criticized the measure, stating, “Work one year —‍ and earn benefits for two.”

Furthermore, the bill’s timing as ⁤an election year adds ⁣another layer ‍of complexity. Senator ‍Chuck Grassley even suggests that expanding the child tax ⁣credit during this period ⁢could benefit President Joe Biden’s ​chances of re-election.

If the bill becomes ⁤law, Biden’s campaign can highlight his role in expanding the child tax ⁤credit. Conversely, if it fails, Republicans can be blamed‍ for blocking a larger child tax credit and tax provisions favored by corporations.

Republicans also express concerns about the fiscal impact of the legislation. While the⁣ bill aims to be deficit-neutral ⁣through changes to the pandemic-era employee retention tax credit, some Senate Republicans view ‍this as deceptive, as it merely‌ scales back a program that was already contributing ‍to the national debt.

Despite these obstacles, there ​is optimism among some in the tax world that the ‌bill, or a modified version of‌ it, ⁤will ultimately pass. Alex Conant, a GOP strategist, believes that Senate Republicans are eager to demonstrate their ability to govern and predicts that the Senate will pass⁣ the House’s bill.

Overall, the fate ‍of the $78 billion child tax credit and business​ tax⁢ bill now rests in the ⁤hands of the Senate, where ⁣it ⁢will⁣ face a series of challenges​ and potential amendments.

Is Congress going to ‍pass ​child tax⁢ credit?

WASHINGTON — The House voted Wednesday night to pass a $78 billion tax package that includes an expansion of the child​ tax ⁣credit, sending it⁢ to the Senate, where⁤ its path is uncertain. The Republican-led House passed the bipartisan measure 357-70, using a fast-track process that requires a two-thirds majority. Chairman, Ron Wyden, remains hopeful about the bill’s progress in the Senate. He believes that ‍the expansion of the child tax ⁤credit is necessary to provide ⁢relief for struggling ⁤families, especially during the current economic downturn caused by the ongoing pandemic. Wyden argues ⁣that the enhanced credit will ​reduce child poverty and help families‍ cover ⁤essential expenses such as childcare and healthcare.

However,⁤ Republican senators ‌express ‌concerns about the potential consequences of increasing the child ​tax credit. They worry that it could ‌disincentivize work,​ as some ‌families may choose to rely on government assistance rather than seeking employment. Critics argue that this may lead to long-term dependency and ⁤hinder economic growth.

Furthermore, there are ⁢reservations about the bill’s impact on the national deficit. The⁤ projected cost​ of $78 billion raises concerns about the long-term financial sustainability of ‍the legislation. ‍Republican⁤ senators emphasize the need for fiscal responsibility and question whether the ​benefits of the bill outweigh its potential drawbacks.

Reaching a consensus on these issues ⁤will be crucial in ensuring the bill’s successful passage ‍through the Senate. Both sides need to engage in productive discussions to address concerns and find common ground. The senators must carefully assess the potential benefits and drawbacks of the bill, considering its impact on American families and the⁤ overall economy.

The outcome of ⁣the bill’s journey through the Senate will depend on finding a balance between providing necessary relief for families and workers, addressing‌ concerns over welfare dependency, and maintaining fiscal responsibility.​ Both parties​ must work together to find practical solutions that can garner broad support and secure the bill’s passage.

Ultimately, the ‌fate of the $78 billion child tax credit ⁢and business tax ⁣bill rests in the hands of ‍the Senate. It will require bipartisan cooperation, open dialogue, and thoughtful deliberation to navigate the​ challenges ‌and arrive at a decision ⁤that benefits the American people. As the bill advances through the‍ Senate, all ‍eyes will be on the legislators to see‌ if they can ⁢overcome their differences and deliver much-needed relief.

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