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Breaking: Historic Child Tax Credit Expansion Sparks Capitol Chaos! What You Need to Know!

"Breaking: Historic Child Tax Credit Expansion Sparks Capitol Chaos! What You Need to Know!"

The U.S. House of Representatives has overwhelmingly passed a $78 billion tax package named the Tax Relief for American Families and Workers Act of 2024. The bill includes provisions to expand the child tax credit and reinstate certain tax incentives for businesses. The legislation, approved by a vote of 357-70, will now move to the U.S. Senate for consideration, although its passage is not guaranteed.

During the House debate on the 84-page bill, bipartisan support was evident, with Democrats and Republicans endorsing the agreement between Missouri Republican Rep. Jason Smith and Senate Finance Chairman Ron Wyden, a Democrat from Oregon.

While many lawmakers lauded the expansion of the child tax credit as beneficial to millions of children across the country, some far-right Republicans criticized the measure, arguing it would expand the “welfare state.” Progressive Democrats, on the other hand, expressed dissatisfaction, claiming the bill didn’t adequately address the needs of low-income and working families.

The bill’s child tax credit expansion aims to immediately benefit 16 million children nationwide, according to Massachusetts Rep. Leading Democrat on the tax-writing committee, Richard Neal. However, the three-year expansion falls short of the levels approved during the COVID-19 pandemic.

Among the bill’s provisions are tax incentives for businesses, including deductions for research and development investments made within the United States. The legislation also seeks to strengthen America’s competitive position with China by addressing double taxation issues for businesses and workers with ties to both the United States and Taiwan.

Funding for the legislation would come from ending the employee retention tax credit, which allowed businesses to file new claims until Jan. 31, 2025, instead of April 15, 2025.

Senate Majority Leader Chuck Schumer has expressed support for the tax bill, indicating plans to advance it to the Senate floor. However, discussions on potential amendments and committee reviews are expected before final approval.

Senate Republicans, including Sen. West Virginian Shelley Moore Capito and Sen.. Thom Tillis of North Carolina, have raised concerns about the bill’s scope and funding mechanisms. Sen. Todd Young of Indiana has signaled intentions to propose changes to the legislation in collaboration with Sen. Mike Crapo of Idaho.

As the bill progresses through the legislative process, its fate and potential modifications remain subjects of debate and negotiation among lawmakers.

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