The leaders of Congress tax-writing committees unveiled on Tuesday an approximately $80 billion bipartisan agreement aimed at enhancing tax breaks for businesses and low-income families until 2025.
However, the likelihood of the deal passing remains uncertain amidst ongoing fiscal divisions.
Crafted by Senate Finance Committee Chairman Ron Wyden, a Democrat, and House Ways and Means Committee Chair Jason Smith, a Republican, the $78 billion package proposes temporary expansions, including the child tax credit and increased low-income housing tax credit.
It also involves reinstating business tax deductions, covering 100% of research and development expenses, as well as capital expenditures for plant and equipment.
These extensions are set to remain effective until the conclusion of 2025, aligning with the expiration of personal tax cuts implemented by Republicans in 2017, Yahoo Finance reported.
The outcome will play a significant role in shaping tax policy discussions leading up to the presidential election in November.
As part of the deal, the maximum “refundable” child tax credit, the amount accessible as a cash payment, would see an increment of $200 per child, reaching $1,800 for 2023, $1,900 for 2024, and $2,000 for 2025.
Written by B.C. Begley
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B.C. Begley 