Some Senate Democrats say they want to try to revive an expanded child tax credit by the end of the year.
Sen. Sherrod Brown of Ohio, chairman of the Senate Banking Committee, has indicated he will push to revive a version of the Democratic child tax credit in exchange for support for changes to the Republican tax law of 2017. Currently, there is broad Democratic and GOP support for continuing to allow large corporations to immediately deduct all of their research expenses, The Washington Post reported in May.
But starting this year, companies must spread those expenses over five years, limiting the total amount of tax deductions under the law. Supporters of the GOP law change may face resistance from some key Democrats.
“I can’t imagine the Senate giving big tax breaks to big business and wealthy people without taking care of the kids first,” Brown told Insider.
Another architect of the expanded child tax credit mirrored Brown’s position. “I think we shouldn’t be extending the American corporate tax cuts if we’re not going to extend the American child tax cuts,” Sen. Michael Bennett of Colorado told Insider.
Bennet also said he had “many conversations” with Utah Sen. Mitt Romney about the child tax credit, but indicated little progress so far. Romney had long said negotiations on the measure could only take place after Democrats approve their health, climate and tax bill. The Inflation Reduction Act passed the House and Senate in mid-August.
President Joe Biden’s stimulus bill transformed the Child Tax Credit into a near-universal one-year cash benefit for families, expanding eligibility for the first time to the poorest households with little or no income. taxable income. Families received $250 per child aged 6 to 17 or $300 for each child aged 5 and under. It expired last year due to resistance from Sen. Joe Manchin of West Virginia and Republicans.
Proponents and some liberal economists argue that Congress should not approve more corporate tax breaks at the expense of tax cuts for families and children. During a time of high inflation, experts say families could benefit from financial assistance to buy groceries or buy gas.
Proponents of the research and development measure say it helps ensure the competitiveness of American companies. They may try to lobby for its inclusion in a year-end government funding bill.
Democrats have struggled to deliver on their campaign promises to raise taxes on the wealthiest Americans, facing resistance from centrists like Sen. Kyrsten Sinema of Arizona who crushed those efforts. Senate Democrats could not afford to lose a single vote to approve the Cut Inflation Act last month in the face of GOP resistance.