(TheRedWire.com) – On Tuesday morning the top Congress tax writers announced a deal that would increase child tax credit (CDC) while also reinstating deductions for businesses that had been previously cut off as a way of paying for the lowered corporate tax rate introduced in the 2017 Tax Cuts and Jobs Act.
Under the new expansion, each child would be allowed a maximum credit of $2,000 rather than $1,600 through 2025. Apart from this expansion, business deductions on capital investments, interest payments, and research and development costs would be reintroduced.
The deal has additional provisions on increasing the housing tax credit for low-income households and would include a carve-out for Taiwanese companies following a U.S. effort to restore segments of the semiconductor industry.
The tax writers are going to be covering the $80 billion deal by nixing the employment retention tax credit, which has become a point of fraudulent business activity.
Jason Smith (R-Mo.) the chair of the House Ways and Means Committee noted that American families would be the ones to receive the benefits from this bipartisan agreement which would help boost American business, provide tax relief, and create jobs.
Senate Finance Committee Chair Ron Wyden (D-Ore.) stated that this proposal would help low-income households across America, including as many as 15 million children. He added that at a time when so many people in his state were facing problems because of the increase in housing prices, this plan would make the low-income housing tax credit be used for the creation of new affordable housing units.
Copyright 2024, TheRedWire.com
