In a significant move towards bipartisan cooperation, the House Ways and Means Committee voted 40-3 on Friday to approve a $78 billion tax package.
This comprehensive legislation, negotiated by House Ways and Means Chair Jason Smith (R-Mo.) and Senate Finance Chair Ron Wyden (D-Ore.), garnered support for its inclusion of an expanded child tax credit and various business-oriented breaks.
Bipartisanship Amidst Divisive Debates
Despite this progress, the bill faces potential challenges as it heads to the full chamber for consideration.
With the Republican-led House set for a one-week recess, the bill is expected to hit the House floor during the week of Jan. 29, aligning with the commencement of the tax filing season.
Sources indicate that the legislation may undergo the “suspension” process, allowing for expedited consideration but requiring a two-thirds majority for passage. While the schedule remains uncertain, Speaker Mike Johnson’s office emphasizes that no official decisions have been made regarding the bill.
Following the committee’s vote, Chair Jason Smith expressed optimism about the potential for bipartisan collaboration on tax relief for workers, families, farmers, and small businesses. However, the bill’s balance between business-focused provisions and the child tax credit expansion has led to internal Democratic divisions.
Three Democrats on the committee, Reps. Gwen Moore, Lloyd Doggett, and Linda Sánchez, opposed the measure, underscoring concerns that the package may be too tilted towards business interests.
The Wall Street Journal editorial board, influential among business-aligned Republicans, criticized the child tax credit provisions and lamented that the bill could grant Democrats a significant policy victory.
The House Freedom Caucus, a group of ultraconservatives, has yet to take a formal position, adding uncertainty to the bill’s fate.
Should the legislation clear the House, its journey through the Senate poses additional challenges. Requiring 60 votes for approval, the bill may face amendments, with Sen. Mike Crapo (R-Idaho) expressing reservations and a desire to make changes.
While some House members consider attaching it to a forthcoming government funding bill, Crapo believes the House will move swiftly to secure a two-thirds majority vote the week after next.
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Bipartisan Tax Package Marks Unprecedented Unity in a Divided Congress
Despite internal disagreements, the bill received qualified praise from the White House and the endorsement of Senate Majority Leader Chuck Schumer. Schumer highlighted the benefits of the child tax credit for low-income families and emphasized the inclusion of an expanded low-income housing tax credit, meeting his red-line demand during negotiations.
The House’s advancement of the bipartisan tax package signals a rare moment of cross-party cooperation on a significant issue in a divided Congress.
As the legislation progresses, its fate hinges on navigating the delicate balance between business interests and social support programs, with potential revisions and amendments shaping its final form in both chambers.
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