On Wednesday, the House of Representatives took a massive step, approving a bipartisan bill that will expand the child tax credit and other business tax credits.
The legislation, known as the Tax Relief for American Families and Workers Act of 2024, passed in a 357 to 70 vote, well over the two third majority. Voting to approve the bill that will give a break to working Americans was 169 Republicans and 188 Democrats.
Now the bill is headed to the Senate.
If the legislation follows the steps laid out by Schoolhouse Rock and becomes a bill it will bolster the child tax credit, making it easier for families to qualify for the credit while increasing the amount from$1,600 per child to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025.
The legislation would also adjust the limit in future years to account for inflation, so that as the cost of raising a child rises so does the credit.
The Center on Budget and Policy Priorities shared that the bill, when in full effect, could lift at least half a million children out of poverty.
Other tax benefits in the bill include a revived tax cut for businesses, like research and development deductions.
The bill was proposed by House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR).
The pair said that the bill was an example of “common sense, bipartisan, bicameral tax framework that promotes the financial security of working families, boosts growth and American competitiveness, and strengthens communities and Main Street businesses.”
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs,” Smith said in a statement.
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Ahead of the vote on Wednesday, Speaker Mike Johnson (R-LA) shared his support for the legislation.
“The Tax Relief for American Families and Workers Act is important bipartisan legislation to revive conservative pro-growth tax reform. Crucially, the bill also ends a wasteful COVID-era program, saving taxpayers tens of billions of dollars. Chairman Smith deserves great credit for bringing this bipartisan bill through committee with a strong vote of confidence, and for marking up related bills under regular order earlier in this Congress,” he said. “This bottom-up process is a good example of how Congress is supposed to make law.”
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