Racine, WI
72°
Cloudy / Wind
5:49 am7:47 pm CDT
SunMonTue
55°F / 48°F
70°F / 46°F
66°F / 54°F

National News

Child tax credit expansion, business incentives combined in new congressional tax plan

iStock

by Ashley Murray, Wisconsin Examiner
January 17, 2024

WASHINGTON — Leading members of Congress released a bipartisan, bicameral tax proposal Tuesday, promising a middle-path deal to help low-income families and provide incentives for businesses as Trump-era tax breaks expire.

The framework led by top tax policy leaders U.S. Democratic Sen. Ron Wyden of Oregon and Republican Rep. Jason Smith of Missouri would raise the child tax credit incrementally through 2025 and restore tax relief for affordable housing projects.

The three-year proposal would also make exempt disaster payments to wildfire victims and to those who suffered losses after the massive train derailment in East Palestine, Ohio. The deal also aims to extend research and development tax credits, as well as reduce tax burdens on U.S.-Taiwan business relationships, an effort to bolster relations with the autonomous island nation vulnerable to Chinese government aggression.

Wyden, chair of the Senate Committee on Finance, said in a statement that “[f]ifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead.”

Democrats have been pushing to permanently raise the tax credit that low-income families receive per child after a temporary increase during the COVID-19 pandemic illustrated significant reductions in child poverty.  The current proposal would end in 2025.

Wyden also praised the deal’s potential to spur affordable housing construction and said that his goal “remains to get this passed in time for families and businesses to benefit in this upcoming tax filing season, and I’m going to pull out all the stops to get that done.”

Smith, chair of the House Committee on Ways and Means, 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.”

This article is republished from the Wisconsin Examiner under a Creative Commons license. Read the original article