The House passes a tax bill with support from both parties, increasing the Child Tax Credit and providing additional incentives for businesses.

The House of Representatives voted on Wednesday to pass a bill that would expand the Child Tax Credit and extend certain business tax credits. This rare bipartisan victory comes at a time of divided government. The bill, known as the Tax Relief for American Families and Workers Act of 2024, received overwhelming support with a vote of 357 to 70. 188 Democrats and 169 Republicans voted in favor of the bill, while 23 Democrats and 47 Republicans voted against it. The bill will now move to the Senate for consideration.

The main focus of the bill is to provide relief to lower-income families by bolstering the Child Tax Credit. While it is not as extensive as the pandemic-era enhancement of the credit, which significantly reduced child poverty, Democrats view this as a positive step. The bill aims to make it easier for more families to qualify for the Child Tax Credit and increase the amount from $1,600 per child to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025. It also includes adjustments for inflation in future years. According to the Center on Budget and Policy Priorities, this could potentially lift at least half a million children out of poverty.

In addition to the Child Tax Credit, the bill also includes revived tax cuts for businesses, such as research and development deductions. These provisions may have helped garner support from congressional Republicans, who were initially hesitant to back the expansion of the Child Tax Credit in an election year.

The agreement for this bill was reached by House Ways and Means Committee Chairman Jason Smith, a Republican from Missouri, and Senate Finance Committee Chairman Ron Wyden, a Democrat from Oregon. They described the bill as a “common sense, bipartisan, bicameral tax framework that promotes the financial security of working families, boosts growth and American competitiveness, and strengthens communities and Main Street businesses.”

In a statement, Smith said, “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.”

The House chose to fast-track the bill by voting on it under a procedure known as a suspension of the rules. This allowed for a quick floor vote and required a two-thirds majority for passage. The bill will now be formatted into a blog post for further dissemination.  

Share This Article
Leave a comment