Congress Close to Approving $70 Billion Deal on Child Tax Credit and Business Tax Breaks

Last Updated on January 12, 2024 by Robert C. Hoopes

Congressional Leaders Negotiating $70 Billion Bipartisan Deal to Expand Child Tax Credit and Provide Tax Breaks for Businesses

Washington, D.C. – In a promising development for American families and businesses, congressional leaders are currently engaged in negotiations over a $70 billion bipartisan deal that aims to expand the child tax credit and provide tax breaks for businesses. This deal, being worked on by members of the Senate Finance Committee and the House Ways and Means Committee, is seen as a rare bipartisan attempt at legislating amid Congress’ struggles in passing new laws.

The package is evenly divided between the Democrats’ objective of enhancing the child tax credit and the Republicans’ desire for business tax incentives. By boosting refundable child tax credits and lifting the cap on refundable credits, the deal aims to provide much-needed relief for needy families and those with multiple children. Furthermore, the business tax breaks included in the deal would revive certain policies from the 2017 Trump tax cuts that have since expired.

The negotiations are crucial for both parties, with Democrats eager to reinstate the expanded child tax credit and Republicans determined to deliver for their business allies in an election year. However, negotiations are still ongoing, with major holdups arising from the Democratic push for housing provisions and the Republican push for tax issues related to natural disasters.

As discussions continue, some liberals have expressed concerns that the deal offers too many tax breaks to corporations. However, there is also support for the business provisions and the potential benefits they may bring to the economy. Ultimately, the goal of the deal is to help middle-class Americans and reduce child poverty, indicating its significance in addressing pressing social and economic challenges.

If successful, this bipartisan agreement would mark a significant achievement for Congress and would provide much-needed support to struggling families and businesses. The negotiations represent a glimmer of hope in a historically divided political landscape and could potentially pave the way for future bipartisan cooperation on crucial issues. As the discussions progress, all eyes will be on Capitol Hill to witness the outcome of this important legislative endeavor.