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U.S. NEWS Wednesday 17 January 2024
Lawmakers announce bipartisan effort to enhance child tax credit,

revive tax breaks for businesses

By KEVIN FREKING able to parents who owe most effective tools in exis-
Associated Press little to nothing in federal in- tence to increase the sup-
WASHINGTON (AP) — The come taxes. The bill would ply of affordable housing,"
chairmen of the top tax incrementally increase the Schumer said. "This pack-
policy committees in Con- maximum refundable child age will make this credit
gress announced a bipar- tax credit to $1,800 for 2023 far more generous and far
tisan agreement Tuesday tax returns, $1,900 for the more easy to access."
to enhance the child tax following year and $2,000 Speaker Mike Johnson,
credit and revive a variety for 2025 tax returns. R-La., was expected to
of tax breaks for businesses, The Center on Budget and meet with Smith on Tues-
a combination designed Policy Priorities, a liberal day to discuss the tax
to attract support from think tank and advoca- agreement.
lawmakers of both politi- cy group, projected that Some lawmakers have in-
cal parties. The roughly $78 about 16 million children in sisted that any tax exten-
billion in tax cuts would be low-income families would sions be paid for so as not to
paid for by more quickly benefit from the child tax add to projected deficits.
ending a tax break Con- credit expansion. The authors of the agree-
gress approved during the "Given today's miserable ment attempt to do that by The U.S. Capitol is seen on Jan. 8, 2024, in Washington.
COVID-19 pandemic that political climate, it's a big speeding up the demise of Associated Press
encouraged businesses to deal to have this opportu- the employee retention tax the credit. The bill would for tax preparers failing to
keep employees on their nity to pass pro-family pol- credit. Under current law, bar additional claims after undertake due diligence in
payroll. icy that helps so many kids businesses had until April Jan. 31 of this year. It also submitting those COVID-19-
The agreement was an- get ahead," Wyden said in 15 of next year to claim would increase penalties related claims.q
nounced by Sen. Ron a statement announcing
Wyden, the Democratic the deal. Republicans were
chairman of the Senate focused on tax breaks for
Finance Committee, and businesses that they said
Rep. Jason Smith, the Re- would help grow the econ-
publican chairman of the omy. The tax breaks in the
House Ways and Means bill would generally align
Committee. The lawmakers their expiration date — the
have been negotiating for end of 2025 — with many
months on a tax package of the other tax cuts that
that would address an ar- were approved in 2017.
ray of priorities before law- Most notably, the bill would
makers turn their focus to give companies of all sizes
election season. the ability to deduct re-
Wyden said his goal is to search and development
gain approval of the mea- costs immediately rather
sure in time for businesses than over the course of
and families to benefit five years. It would also
during the upcoming filing allow businesses to fully
season. The Internal Rev- deduct the purchase of
enue Service will begin equipment, machinery
accepting and processing and technology. And, the
tax returns on Jan. 29, so bill also provides more flex-
lawmakers are looking to ibility in determining how
move the bill as quickly as much borrowing can be
possible. deducted.
Meeting that goal may Smith said the agreement
prove difficult as lawmakers "strengthens Main Street
are already racing to finish businesses, boosts our com-
their spending bills and are petitiveness with China,
considering a bill focused and creates jobs."
on both aiding Israel, and Senate Majority Leader
Ukraine and stemming the Chuck Schumer, D-N.Y.,
flow of migrants entering said he supported the tax
the country at the U.S.- package and "that there
Mexico border. One option are many things in it both
would be for leaders in the sides can celebrate." He
House and Senate to at- praised the inclusion of an
tach the measure to one of increased tax credit for the
those top-priority bills. construction and rehabili-
In forging the agreement, tation of housing for low-
Democratic negotiators income households, and
were focused on boosting he said he could not have
the child tax credit. The tax supported the package
credit is $2,000 per child, without it.
but only $1,600 is refund- "The low-income hous-
able, which makes it avail- ing tax credit is one of the