60 Votes Needed: Senate Republicans Block Bid to Expand Child Tax Credit and Cut Business Taxes, What’s Next?

Senate Republicans Block Major Tax Bill Despite House Approval

Child Tax Credit Expansion and Business Tax Cuts Stalled in Senate

As per CBS News, the Senate on Thursday failed to go forward with a major tax deal that was supposed to increase the Child Tax Credit and lower company rates. The plan was fiercely opposed by Senate Republicans even after it was passed by the House earlier this year with broad bipartisan support. The goal of the Tax Relief for American Families and Workers Act of 2024 was to help lower-income families by increasing the Child Tax Credit. The Center on Budget and Policy Priorities estimates that this plan might still help around half a million children escape poverty while being less comprehensive than the pandemic-era credit increase that expired in 2021. It also included revived tax cuts for businesses such as research and development deductions. The bill fell short in a Senate vote with 48 in favor and 44 opposed needing 60 votes to advance. Three Republicans—Sens. Josh Hawley, Markwayne Mullin and Rick Scott—joined Democrats in supporting the bill. However, Sens. Joe Manchin and Bernie Sanders independents who caucus with Democrats voted against it.

With inflation adjustments made in later years the proposed measure sought to raise the Child Tax Credit from $1,600 to $2,000 per child by 2025. Sen. Ron Wyden, a Democrat, and House Ways and Means Committee Chairman Jason Smith, a Republican, first introduced the bipartisan bill in January. The expansion was projected to cost about $33 billion with offsets to balance the cost meaning the deficit over the next ten years would be substantially affected. The House approved it with a 357 to 70 vote. Wyden emphasized the balanced nature of the bill and highlighted the rare bipartisan support it received. Despite this, Senate Republicans voiced concerns about the bill’s cost and the potential political advantage it could give Democrats in the upcoming election. Some Republicans advocated for waiting until after the election to address tax issues. Sen. Mike Crapo criticized the lack of engagement from Democrats suggesting the bill was pushed for election-year messaging rather than substantive reasons.

READ ALSO: $20 Million Boost: Wisconsin Tribes to Receive Federal Funding to Tackle Urgent Housing Crisis-Check it out!

60 Votes Needed: Senate Republicans Block Bid to Expand Child Tax Credit and Cut Business Taxes, What’s Next? (PHOTO:DNyuz)

Furthermore, Senate Majority Leader Charles Schumer stressed the need of recording Republicans’ votes even if he acknowledged the bill’s weak chances. Calling the bill a fair bipartisan compromise the White House urged the Senate to support it and chastised the GOP for opposing a bill that fit with their self-proclaimed character as the “party of family and business.” The bill’s future is still unknown though because of the Senate Republicans’ resistance.

READ ALSO: $2,600 Stimulus Payment for Seniors Not Real, Authorities Warn Against False Claims-Beware!