House Committee Meeting Shortly To Mark Up Bipartisan Tax Bill

The House of Representatives Ways and Means Committee is due to convene shortly to markup a bipartisan and bicameral USD$78 billion tax deal which will extend child tax credits in return for business tax cuts. Livestream

• The framework would restore three business deductions - benefiting companies with capital expenses, research spending, and interest costs and boosts child tax credits from $1,600 to $2,000 per child. It also carves out Taiwanese companies with US operations to prevent double taxation, and increases low income housing credit.
• The deal, one of the few pieces of major legislation that could pass Congress this year, is facing sizable opposition from both conservative Republicans and progressive Democrats meaning successful navigation through Congress is likely to come via the center of each party.
• Progressive Democrat Senator Elizabeth Warren (D-MA) told reporters on Wednesday: “We should demand more of ourselves than going along with a deal that gives big corporations billions and billions of dollars more in tax breaks than help for struggling families. It just makes no sense at all.”
• The WSJ wrote in a critical editorial: "The child credit also does nothing to increase economic growth, as numerous studies have documented. The deal would index the credit’s $2,000 value to inflation, which means it will expand on autopilot. The expanded credit is supposed to be temporary but will be politically difficult to undo once in place..."