A House $78 billion Tax Package with Major Benefits for Companies took a significant step towards becoming Law on Friday, when a Key House Panel overwhelmingly Approved the Bill, by a Vote of 40-3.
The Package includes:
- Allowing the immediate Expensing of: Research and Development Costs, and allowing Machines, Equipment, and Vehicles to be Fully and Immediately Expensed, and Increased Flexibility for Businesses through Interest Deductions.
- Tax Credits to Incentivize the building of Affordable Rental units, Disaster Relief for Wildfires and Train Derailments that occurred last year, and the First Steps to Remove Double Taxation forBbusiness and Workers with ties to the U.S. and Taiwan.
- Expands the Child Tax Credit by adjusting it for Inflation, and allowing Americans who don't have a Tax Bill to get the Credit as a Refund.
Several of these Provisions were part of the 2017 Trump Tax Cuts, that Expired over the last several years. Since then, Major Business Groups like the Business Roundtable, Chamber of Commerce, and the National Association of Manufacturers, have lobbied Lawmakers to Reinstate them.
The Package was the result of a rare, Bipartisan Agreement between House Ways and Means Chair Jason Smith (R-MO, 8th District) and Senate Finance Chair Ron Wyden (D-OR).
In addition to Friday's Committee Vote, the White House also came out in Support of the Legislation. "It's going to lift hundreds of thousands of children out of poverty and support construction of hundreds of thousands of affordable rental housing units," said White House Press Secretary Karine Jean-Pierre. "It is a welcome step forward and we believe Congress should pass it."
Whether the White House's Endorsement Helps to win over Congressional Democrats remains to be seen. A number of Influential Democrats raised Concerns about the Package after it was introduced earlier this week.
"We're better doing [the tax bill] than letting all this stuff lapse, but that doesn't mean that it's right," said Rep. Earl Blumenauer (D-OR, 3rd District) at Friday's Ways and Means Vote. "That doesn't mean that we can't do better."
In the end, Blumenauer said He would "reluctantly" Vote for the Bill, but wanted to see the Child Tax Credit expanded further.
To Pay for the Measures, the Package would End a Pandemic-era Tax Credit on Jan. 31st, for Businesses with Employees impacted by Covid-19.
House Speaker Mike Johnson (R-LA, 4th District) had yet to Confirm When, or even If, He would bring the Bill to the House Floor for a Vote. But Smith and Wyden are hoping to get theMmeasure passed as soon as possible, so Provisions in the Bill can apply to 2023 Federal Tax Filings, due April 15th.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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