JACKSONVILLE, Fla. – Millions of Americans could see some additional relief on their taxes.
In a rare breakthrough, the House passed a $78 billion tax package, with bipartisan support, that would enhance the child tax credit for lower-income families and boost tax breaks for businesses.
Some argue that’s not enough, others say it’s too much, and the bill’s fate in the Senate is uncertain.
For a Chamber that has failed to pass any bills of consequence, House Speaker Mike Johnson said this is a good example of how Congress is supposed to work -- and many of his colleagues agree.
“What you’re hearing is what happens when we work and pull together,” said Rep. John Larson, D-Connecticut.
The package would raise the child tax credit to $1,800 per child in 2023, $1,900 per child in 2024 and $2,000 per child in 2025. It would also adjust the value for inflation in 2024 and 2025.
Households benefiting from the change would see an average tax cut of $680 in the first year.
“It’s a huge win for working families, small businesses and employers throughout the country,” said Rep. Carol Miller, R-West Virginia.
So where is the money coming from to pay for these cuts?
The bill would move up the deadline for claiming the COVID-era “employee retention tax credit” to offset the cost. Speaker Johnson described that program as “wasteful” and “plagued with fraud.”
Democrats pushed to restore the more generous tax credit passed in President Joe Biden’s first year in office with payments occurring monthly, but most were willing to take what gains they could get.
“The tax credit is one of the most effective anti-poverty programs in the country,” said Rep. Terri Sewell, D-Alabama
Some Republicans also balked at the expanded child tax credit, likening it to “welfare.” They also don’t want undocumented migrants to claim the credit.
“We are going to give cash payments to people who don’t even pay taxes,” said Rep. Thomas Massie, R-Kentucky
The legislation now heads to the Senate where it will need 60 votes to pass, and it’s not clear if the votes are there.