1 of 3 | The House Ways and Means Committee and Senate Finance Committee on Tuesday reached a deal on an agreement that would raise the child tax credit and cut red tape for small businesses. File Photo by Pat Benic/UPI |
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Jan. 16 (UPI) -- House and Senate committee members announced a rare bipartisan deal that would boost the child tax credit and reduce small business regulations while ending a fraud-plagued COVID-19 program.
House Ways and Means Committee Chairman Rep. Jason Smith, R-Mo., and Senate Finance Committee Chairman Sen. Ron Wyden, D-Ore., said the Tax Relief for American Families and Workers Act of 2024, includes "pro-growth" policies for research and development, provides expedited tax relief for communities hit by disasters, improves low-income housing tax credits and kills the scorned Employee Retention Tax Credit program which was created during the pandemic.
"American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China and create jobs," said Smith.
"This legislation locks in over $600 billion in proven pro-growth, pro-America tax policies with key provisions that support over 21 million jobs. I look forward to working with my colleagues to pass this legislation."
The bill also increases the maximum child tax credit from $1,600 to $2,000 per child through 2025.
Wyden said 15 million children from low-income families will benefit from the act through the child tax credits.
"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," he said.
"At a time when so many people in Oregon and all across American are getting clobbered by rising rents and home prices, the improvements this plan makes to the Low-Income Housing Tax Credit will build more than 200,000 new affordable housing units."
It also includes red tape cuts for small businesses and benefits for research and development were items prized by Republicans.
The deal, though, still has to pass the full Senate and a more fractious House, which is still dealing with a possible government shutdown. Wyden said he wants to put the bill on a fast track.
"My goal remains to get this passed in time for families and businesses to benefit in this upcoming tax filing season," Wyden said. "I'm going to pull out all the stops to get this done."
