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Jimmy Williams
The Republican-led House is gearing up for a vote this week on a $78 billion bipartisan bill that would expand the child tax credit and introduce a series of tax breaks for businesses.
Having received approval from the Ways and Means Committee with a resounding 40-3 vote, the legislation could potentially come up for a vote as early as Wednesday, although the timing remains flexible, according to informed sources.
The bill presents a rare opportunity for a Congress often criticized for its lack of productivity to deliver a tangible win for constituents. Its provisions include tax cuts for businesses, specifically targeting research and development, as well as small business expensing. While these measures are applauded for their potential economic benefits, concerns have arisen from both ends of the political spectrum.
Ways and Means Chair Jason Smith, a key architect of the bill, emphasized the pro-worker and pro-family policies embedded in the legislation. Smith sees the broad support garnered in the committee vote as indicative of a bipartisan desire to address crucial issues such as child poverty through the extension of the child tax credit.
However, internal GOP divisions have surfaced, with some Republicans expressing discontent over the bill’s failure to raise the cap on federal deductions for state and local taxes (SALT). This aspect is particularly contentious for members hailing from high-tax states like New York and California. In a private call, concerns were raised about the absence of SALT relief, with Rep. Nick LaLota from New York making his objections clear.
“I’m a no on the tax package that does not have adequate relief for SALT. I’m willing to fight for my constituents by voting no,” said LaLota, reflecting the sentiment of those advocating for SALT relief.
Additionally, conservative voices within the Republican Party, like Rep. Chip Roy, have criticized the bill. Roy labeled fellow Republicans as “whores” for businesses on a podcast, emphasizing his dissatisfaction with what he perceives as a focus on tax cuts for corporations.
“I’m sick of these gutless cowards in Washington. You know what we’re gonna put on the floor next week, Jimmy? A tax cut bill for corporations,” Roy said on the podcast “Fox Across America w/ Jimmy Failla,” which was posted Thursday. “Because Republicans are whores for endless wars and corporations. That’s it. That’s what they stand for. And I’m not gonna pretend that it’s something else.”
The bill faces a two-thirds majority requirement in the House, potentially fast-tracking its journey through the legislative process. Despite concerns and dissenting voices, proponents remain optimistic about its passage in the House. The Senate, however, poses a more uncertain landscape, with the bill requiring 60 votes to overcome a filibuster.
Senate Finance Chair Ron Wyden, a co-author of the bill, dismissed conservative claims that it would benefit children of undocumented immigrants. Wyden highlighted the bill’s potential positive impact, stating, “It’s a very difficult political climate right now. They take it up. And if it gets a big vote … then my view is this will change considerably.”
As the legislative process unfolds, the fate of the bill remains uncertain, with its potential significance heightened by ongoing debates around economic policies, tax cuts, and bipartisan collaboration.
