Senate Vote Expected on Child Tax Credit Business Tax Break Package
WASHINGTON (NEWSnet/AP) — Democratic Senate Leader Chuck Schumer is setting up a vote for Thursday on a bipartisan tax cut package aimed at expanding the child tax credit for millions of families and restoring some business tax breaks.
But some Republicans are hesitant, saying they will have more leverage to enact the tax changes they want if their party wins control of the White House and both chambers of Congress in November’s election.
“I think we can do better next year,” said Sen. John Cornyn, R-Texas.
Either way, Thursday’s vote is expected to be the last one taken by the Senate before lawmakers head home for the August recess.
The roughly $79 billion package passed the House overwhelmingly in January, 357-70. But it has stalled in the Senate. The procedural vote to advance the measure will require support from 60 senators, which is unlikely.
Large parts of the tax cut package passed under Republican control in 2017 are set to expire after 2025, pushing tax issues to the forefront.
The bill would restore full, immediate deductions that businesses can take for the purchase of new equipment and machinery, and for domestic research and development expenses. It also would help more low-income families take fuller advantage of the child tax credit.
The cost of the bill would be paid for by speeding up the cut-off date by which companies could submit retroactive claims for employees they kept on the payrolls during the COVID pandemic. The IRS has said a significant majority of retroactive claims are at a high risk of fraud.
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