Child Tax Credit expansion: Will the Senate pass the bill?
In a rare example of bipartisanship on Capitol Hill, a $78 billion tax package passed the House 357-70. Its fate though is uncertain in the Senate.
Democrats and Republicans in the House passed a $78 billion tax package with overwhelming support from both sides of the aisle on Wednesday night. The legislation includes an expansion of the Child Tax Credit, a Democratic initiative, and business tax breaks, which Republicans had wanted.
The bill, which passed 357-70 with broad support from both parties, will now be sent over to the Senate. There its fate is less certain with objections to some aspects expressed by both Democratic and GOP lawmakers.
Child Tax Credit expansion: Will the Senate pass the bill?
The new tax bill, which would take effect this year, was hammered out by members of the Republican-led House Ways and Means Committee and the Democratic-led Senate Finance Committee. House Ways and Means Committee Chairman Jason Smith called the bill “pro-growth, pro-jobs, pro-American,” prior to the vote. “This is a win for millions of small businesses, a win for millions of working families, a win for America.”
In the Senate, Finance Committee chair Senator Ron Wyden said of the bill’s passage that “it’s a real victory to have such strong momentum behind this bill that will help 16 million American kids from low-income families get ahead.” He personally would’ve liked to have seen a much bigger expansion of the Child Tax Credit, but given that it had to be bipartisan to have any hope of becoming law “nobody is getting everything they want,” he said in a statement.
“I’m going to work with Leader Schumer and my colleagues on both sides to get this done as soon as possible,” Wyden added. However, the legislation is likely to face a filibuster, which would require getting 60 votes in the upper chamber.
Republican senators express objections to Child Tax Credit expansion
Wyden’s GOP counterpart in the Finance Committee, Senator Chuck Grassley, expressed concerned that it would make President Biden “look good” in an election year, especially if taxpayers get refunds from the tax provisions before the election. He’s also worried that if Biden is re-elected extending the 2017 Trump tax cuts, which expire next year, could be in jeopardy.
Senator Mitt Romney, who has supported previous expansions of the Child Tax Credit and even put forth his own proposal in 2022 to put the disbursement of the financial assistance to families under the Social Security Administration, called the House bill “excessive.” He also thinks the House-approved expansion of the Child Tax Credit would turn it into another massively expensive entitlement program.
Another Republican senator that Democrats hope to get behind the bill Thom Tillis hates parts of the legislation. He wants lawmakers to take their time to “get the child tax credit right.” However, he did offer a ray of hope for the tax package, “I think it’ll probably get support. I’m just not going to make it easy,” he said.
Follow all the latest news on AS USA.