The future of the expanded Child Tax Credit is unclear in the Senate following the House of Representatives’ approval.

On Wednesday, the House of Representatives approved a significant tax bill that would expand the Child Tax Credit and extend certain business tax breaks. The bill received rare bipartisan support, with more Democrats than Republicans voting in favor. The next step is for the Senate to vote on the bill, but it remains uncertain whether it will pass.

The legislation, called the Tax Relief for American Families and Workers Act of 2024, was introduced by Senate Finance Committee Chairman Ron Wyden and House Ways and Means Committee Chairman Jason Smith. They described it as a “common sense, bipartisan, bicameral tax framework” that aims to support working families, promote economic growth, and strengthen communities and small businesses.

Senate Majority Leader Chuck Schumer has expressed his support for the bill and is working with Wyden to determine the best course of action. However, some Senate Republicans have voiced concerns about the cost and potential political implications for President Biden’s reelection. On the other hand, some progressives argue that the bill does not go far enough in providing support for low-income Americans.

One of the main provisions of the bill is an enhancement of the Child Tax Credit, which would provide relief to lower-income families. While the increase is smaller than the pandemic-era boost, it is estimated to lift at least 500,000 children out of poverty, according to the Center on Budget and Policy Priorities. However, there is expected opposition from both sides of the political spectrum.

Senator Mitt Romney, a Republican from Utah, has stated that he is not inclined to support the bill due to concerns about the cost of adding a new entitlement that could amount to $800 billion over the next decade. The bill passed by the House would expand the credit for three years at a cost of approximately $33 billion, according to the Congressional Budget Office.

Overall, the fate of the Tax Relief for American Families and Workers Act of 2024 remains uncertain as it heads to the Senate for a vote. Both sides will need to come to a compromise in order for the bill to pass and be signed into law by President Biden.  

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