WASHINGTON — The House on Wednesday passed a bipartisan $79 billion tax cut package that would expand the child tax credit and reinstate some tax cuts for businesses.
The bill passed by a 357-70 margin but still will face an uphill battle for approval by the Senate, The Associated Press reported. Forty-seven Republicans and 23 Democrats voted against the bill, according to The New York Times.
The bill was negotiated between Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee; and Sen. Ron Wyden, D-Ore., chairman of the Senate Ways and Means Committee, according to USA Today.
Breaking News: The House passed a bipartisan package that would expand the child tax credit and restore corporate tax breaks. It now heads to the Senate. https://t.co/YgQ8ECSqAk
— The New York Times (@nytimes) February 1, 2024
The bill passed easily in committee, as the House Ways and Means Committee approved the measure by a 40-3 margin earlier in January, The Wall Street Journal reported.
The bill would expand eligibility for the child tax credit among the lowest-income families, according to The Washington Post. The measure also would adjust payments for inflation for the 2024 and 2025 tax filing years.
Certain tax credits, including deductions for research and development, interest expenses and investments in equipment, would be helped by the measure, according to the newspaper.
Smith called the legislation “pro-growth, pro-jobs and pro-America,” the Times reported.
“It’s a strong, common sense, bipartisan step forward in providing urgent tax relief for working families and small businesses,” Smith said.
Even as the bill passed the House, some senators were already voicing their opposition.
“There are issues that need to be fixed,” said Sen. Mike Crapo, R-Idaho, told USA Today. Crapo is the leading Republican on the Senate Finance Committee, which handles tax legislation.
Sen. Chuck Grassley, R-Iowa, said he would evaluate the bill, but initially said he opposed it because it could help President Joe Biden’s reelection campaign, the Post reported.
“I think passing a tax bill that makes the president look good -- may allow checks before the election -- means that he can be reelected and then we won’t extend the 2017 tax cuts,” Grassley told reporters.
The legislation would be financed by curbing the employee retention tax credit, which was passed during the pandemic, the Times reported. The bill was intended to encourage employers to keep workers on the payroll, according to the newspaper.
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