House passes bipartisan tax bill that would expand child tax credit
The House voted Wednesday night to pass a bipartisan tax bill that would enhance the popular Child Tax Credit to benefit millions of American families.
The House voted 357-70 to pass the measure -- a rare bipartisan win. It now goes to the Senate, where its fate is uncertain.
If passed by the Senate, the $78 billion tax package called the Tax Relief for American Families and Workers Act of 2024 would increase the child tax credit and restore critical research and development deductions. It includes new low-income housing tax credits and disaster tax relief and tax benefits for Taiwan. If passed, the changes would be in effect through 2025 when previous Republican tax cuts expire.
House Speaker Mike Johnson, in a statement Wednesday, called the tax bill "important" legislation.
"This bottom-up process is a good example of how Congress is supposed to make law," Johnson said.
Despite overwhelming support for the bipartisan bill in the House, there were still several issues lawmakers had with the legislation, including the child tax credit and state and local tax deductions.
Several New York Republicans (Reps. Nick LaLota, Mike Lawler, Anthony D'Esposito and Andrew Garbarino) were angered that the tax bill did not have state and local tax deduction limits -- also known as SALT provisions. This was a top priority for New York lawmakers. Johnson met with this group late Tuesday to discuss SALT provisions.
Meanwhile, several conservatives including members from the far-right House Freedom Caucus (Reps. Bob Good and Byron Donalds) criticized the bill for expanding the child tax credit. Many liberal Democrats voted vote against the bill because they argue the bill does not expand the child tax credit enough.
The tax bill was negotiated by Senate Finance Committee Chair Ron Wyden of Oregon and House Ways and Means Committee Chair Jason Smith of Missouri. It passed with bipartisan support out of the House Ways and Means Committee on Jan. 19 by a vote of 40-3.
