The Republican-led House of Representatives is reportedly angling for a vote on a measure to extend child tax credits and several tax breaks for businesses, in a $78bn package that has bipartisan support, but which could face resistance from some conservatives. The legislation could appear as soon as this week, according to sources with inside knowledge, although no date has been confirmed yet. The rules would include extensions of Republican tax cuts from 2017 that aimed to help working families and provide tax breaks for research and development for small businesses.
However, some left-leaning members of Congress have raised concerns about the inclusion of tax breaks for businesses, while various Republicans have criticized the restrictions on federal reductions for state and local taxes (SALT), which states such as California and New York rely on disproportionately. Republicans will require a two-thirds vote in the House to pass the measure. Polls suggest that the package is an attempt by a generally ineffective Congress to show some progress, particularly given the popularity of the tax credits for families with children, which are forecast to cut child poverty.
Ways and Means Chair Jason Smith, who co-authored the legislation, said the bill would deliver “proven pro-worker, pro-family policies”. Responses have not been entirely positive, however. While the measure cleared the committee with a 40-3 vote, the objections from the three “no” voters have been accompanied by a growing swell of criticism from Republican members of the so-called “SALT” caucus. During a private call last week, Rep. Nick LaLota (R-NY) reportedly raised voice amid complaints that the package did not expand the cap on SALT deductions.
According to reports, however, Smith defended his decision not to expand the SALT cap, a viewpoint that appears to reflect that of most of his fellow Republicans in Congress. The measure reflects Republican policy to support middle and lower-income families, but it remains to be seen whether the measure can find sufficient support to pass into law or whether it will founder in the face of Republican objections to SALT restrictions.
Several Republican members of Congress, including supporters of Trump, have to date voted against their caucus on related tax-based measures. The current package is far from the only bill to be put before the House, but given the bipartisan support, it is being seen as the one with the greatest potential to pass into law.
The coming vote will potentially indicate not just policy items such as the Republican drive for support for family tax credits, but also the extent to which conservatives are willing to work with ultramodern technologists.
