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House Approves $78 Billion Tax Bill Aimed at Expanding Child Tax Credit

The House of Representatives has voted in favor of a bipartisan tax bill aimed at enhancing the widely popular Child Tax Credit, benefiting millions of American families.

Tax Relief for American Families and Worker Act

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The legislation, known as the Tax Relief for American Families and Workers Act of 2024, secured a rare bipartisan victory with a vote of 357-70.

The bill now proceeds to the Senate, where its future remains uncertain.

Key Provisions of the Tax Bill

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The Tax Relief for American Families and Workers Act of 2024, a $78 billion tax package, encompasses several significant provisions, including the expansion of the Child Tax Credit, restoration of vital research and development deductions, introduction of new low-income housing tax credits, provisions for disaster tax relief, and tax benefits for Taiwan.

Effective Duration

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If the bill is passed by the Senate, the proposed changes are slated to be in effect through 2025, coinciding with the expiration of previous Republican tax cuts.

House Speaker’s Perspective

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House Speaker Mike Johnson emphasized the significance of the tax bill, describing it as “important” legislation that exemplifies Congress’s legislative process.

He noted the collaborative and bottom-up approach in crafting the bill.

Concerns and Dissent

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Despite strong support for the bipartisan bill in the House, some lawmakers raised concerns and voiced dissent.

New York Republicans Views

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New York Republicans, including Representatives Nick LaLota, Mike Lawler, Anthony D’Esposito, and Andrew Garbarino, expressed disappointment over the absence of state and local tax deduction limits (SALT provisions) in the bill, a priority for New York legislators.

Discussion On SALT Provisions

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Speaker Johnson held discussions with this group regarding SALT provisions.

Conservative Members Criticized the Bill

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Conservative members, particularly from the House Freedom Caucus, such as Representatives Bob Good and Byron Donalds, criticized the bill for its expansion of the child tax credit.

Democrats Say It Did Not Go Far Enough

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Some Liberal Democrats opposed the bill, contending that it did not go far enough in expanding the child tax credit.

Negotiation and Committee Approval

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The tax bill was a product of negotiations between Senate Finance Committee Chair Ron Wyden of Oregon and House Ways and Means Committee Chair Jason Smith of Missouri.

It secured bipartisan support when it passed the House Ways and Means Committee with a resounding vote of 40-3 on January 19.

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