A bill to expand the child tax credit (CTC) and restore some tax breaks for businesses failed to advance in the Senate on Thursday on a 48-44 vote. Republicans largely opposed the measure, arguing they would be in position to get a better deal next year. The $79bn legislation would have expanded CTC eligibility among the lowest-income families and adjusted payments for inflation for the 2024 and 2025 filing years. It also would have bolstered certain business tax credits, including deductions for research and development, interest expenses and investments in equipment, that were limited in an effort to cap the total costs of former President Donald Trump’s 2017 tax cut law. Sen. Mike Crapo (RID), the ranking member of the Senate Finance Committee, described the vote as a “blatant attempt to score political points.,” adding that Senate Republicans have concerns about the policy, but are willing to negotiate a “child tax credit solution that a majority of Republicans can support.” Sens. Joe Manchin (I-WV) and Bernie Sanders (I-VT), who caucus with Democrats, also voted against the measure. Without action from Congress, the child tax credit, among other individual tax provisions, will revert to 2017 levels after 2025. “Next year, they’ll have a bigger job to do because you have an underlying credit that’s much more expensive to extend,” said Garrett Watson, senior policy analyst and modeling manager at the Tax Foundation.
Bill to expand CTC, restore tax breaks fails in Senate
12 responses to “Bill to expand CTC, restore tax breaks fails in Senate”
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