A comprehensive, bipartisan tax bill measure that would restore certain company tax breaks and increase the CTC for American families was approved by the House on Wednesday. By a bipartisan vote of 357-70, the tax bill plan that had been negotiated by House Ways and Means Committee Chair Rep. Jason Smith, R-Mo., and Senate Ways and Means Committee Chair Sen. Ron Wyden, D-Ore., was approved by the House.
The proposal needed broad support in the House because Republicans expedited it using a strategy known as “suspension.” A two-thirds majority is needed to approve any law under suspension as opposed to a simple majority. However, the nearly $79 billion tax bill plan still has a long way to go in the Senate, where Republicans are insisting that the bill pass more obstacles.
The ranking Republican on the Senate Finance Committee, which oversees tax policy, Sen. Mike Crapo, R-Idaho, stated, “There are issues that need to be fixed.” Here’s everything you need to know about the legislation that the Senate is debating, as well as the potential implications for parents, business owners, and other citizens nationwide.
How Will I Be Affected By The Tax Bill?
The tax bill package that was enacted on Wednesday would increase the refundable component to $1,800 per kid in 2023, $1,900 per child in 2024, and $2,000 per child in 2025, but it would not increase to the level of the pandemic-era child tax credit. In 2024 and 2025, the value would also be adjusted for inflation.
However, the law doesn’t only apply to parents. It would also reinforce the low-income housing tax credit and provide tax incentives to those affected by natural catastrophes. The law also includes provisions to establish advantages to boost trade with Taiwan and to continue company tax reductions through 2025.
