Republicans in the US House of Representatives introduced a number of new tax breaks on Friday, while simultaneously proposing to repeal some of President Joe Biden’s legislative triumphs, such as incentives to encourage the purchase of clean-burning electric vehicles.
The House Ways and Means Committee will be considering three related proposals that were introduced on Friday. The legislation is expected to be finished next week.
US House Republicans Unveil Tax Breaks
The Joint Committee on Taxation is anticipated to publish its study of the package at that time as well.
The ideas were labeled a tax fraud by White House spokesperson Karine Jean-Pierre, who also charged that the (Republican) focus is delivering freebies to rich special groups and businesses at the expense of everyone else, not decreasing the deficit or out-competing the globe.
Democrats were already debating whether the tax legislation could contribute to the growing national debt.
The committee estimated that the provisions total hundreds of billions of dollars. Certain tax breaks are increased, while others, like Biden’s electric car credit, are eliminated or scaled back.
The panel’s senior Democrat, Representative Richard Neal, claimed that Republicans were setting the basis for even greater cutbacks in 2025 when the 2017 tax law’s provisions are set to expire.
Neal claimed that the legislation put forth on Friday will bring about retroactive corporate tax cuts, next to nothing for the most vulnerable children and families, and sneaky favors for Big Oil.
Days after Democratic President Joe Biden signed legislation that Republicans planned to use to start decreasing the debt by slashing around $1.3 trillion in spending, the bill was filed by Republicans, who control the House.
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Business Depreciation Increases, and Democratic Amendments
The measure also suspended the debt ceiling until January 1, 2025, a much-needed expansion in the US’s borrowing capacity.
Married couples filing jointly would benefit from a $4,000 deduction bonus for two years under the proposed legislation, which the committee estimated could aid up to 107 million people using the standard deduction.
The bar for depreciation deductions would also be raised from the current $1 million, which was part of the Republicans’ comprehensive 2017 tax cut deal, to a permanent $2.5 million under the measure.
The extension of tax incentives for small start-up businesses to S Corporations and the elimination of some red tape that small businesses encounter in relation to contract workers are additional provisions.
Democrats on the Ways and Means Committee are anticipated to offer amendments to the bill, including a permanent extension of a portion of the Child Tax Credit that was originally authorized but has since expired and helped nearly 4 million children escape poverty in the wake of the coronavirus pandemic in just one year.
Republicans have objected to the proposal.
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