Senate Faces Showdown Over Child Tax Credit and Business Tax Cuts
Aug 1, 2024 / GMT+6
Senate Majority Leader Chuck Schumer is urging Republicans to vote on a new tax cut plan. This plan aims to expand the child tax credit for millions of families and restore some business tax breaks.
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The plan, which passed the House in January with strong support, has stalled in the Senate. Republicans are expected to block it. They argue that they could secure better tax changes if their party wins the White House and Congress in November.
Senator John Cornyn from Texas said, “I think we can do better next year.” Large parts of the tax cuts from 2017 are set to expire after 2025, making tax issues a hot topic.
The bill, put together by Rep. Jason Smith and Sen. Ron Wyden, aims to restore full deductions for business equipment and research costs. It also seeks to improve the child tax credit, which could lift 500,000 people out of poverty and benefit 16 million children, according to the Center on Budget and Policy Priorities.
Schumer is pushing for the vote before the August break to highlight differences between the parties. He wants voters to see which senators support or oppose tax relief for families and businesses.
The bill is funded by speeding up the deadline for companies to claim retroactive employee credits from the COVID pandemic. However, many retroactive claims are at risk of fraud, according to the IRS.
Schumer has criticized Senator JD Vance’s claims that Democrats are “anti-family” and challenged Republicans to show their commitment to family-friendly policies.
