My MBA Career: Stay Updated on Sweeping, Bipartisan Bill Encompassing Expanded Child Tax Credit and Business Tax Breaks

Last Updated on February 1, 2024 by Robert C. Hoopes

The House of Representatives recently passed a bipartisan tax bill that aims to benefit families and businesses. Negotiated between Representative Jason Smith and Senator Ron Wyden, the bill has received widespread support in the House but still faces challenges in the Senate.

One of the key provisions of the bill is the expansion of the child tax credit. If the bill becomes law, it would raise the refundable portion of the credit to $1,800 per child in 2023, $1,900 per child in 2024, and $2,000 per child in 2025. This increase in the child tax credit is intended to provide financial relief to families.

Additionally, the legislation includes tax benefits for individuals affected by natural disasters and strengthens the low-income housing tax credit. These measures aim to support those who have been negatively impacted by unforeseen circumstances and to provide affordable housing options for low-income individuals and families.

However, in order to finance these tax breaks, the bill proposes eliminating the employee retention tax credit. This has raised concerns among some lawmakers who worry about the potential consequences for businesses and job retention.

The bill has faced opposition from both ends of the political spectrum. Ultraconservative lawmakers have expressed concerns about the expanded child tax credit, arguing that it could lead to increased government spending. Conversely, progressive lawmakers believe that the bill falls short in expanding the credit and unfairly benefits corporations.

A small group of moderate New York House Republicans have also raised concerns about the lack of reform for the state and local tax deduction. However, they have agreed to continue discussions on this issue, indicating a willingness to find a compromise.

While the bill has made significant progress by passing in the House, it still needs to clear additional hurdles in the Senate before it can become law. It remains to be seen whether the bill will garner the necessary support and move forward in the legislative process. As the Senate debates this tax bill, its potential impacts on families, businesses, and the overall economy will be closely watched.