The proposal would cost $33 billion to expand the CTC plus another $33 billion for business holidays Compensation almost exactly Through the $77 billion in revenue generated by eliminating the Employee Retention Credit (ERC).
Democrats proposed amendments to further strengthen the CTC by making it fully refundable and sending it out in monthly payments. Close By the committee.
However, top Democrats, including prominent Rep. Richard Neil (Mass) and MP. Bill Pascrell (New Jersey), voted in favor of the plan. Representatives only. Lloyd Doggett (D-Texas), Linda Sanchez (D-California) and Blake Moore (R-Utah) voted against it.
While the bill is revenue-neutral and provides $33 billion in deductions for research costs and other business expenses, Republicans have boasted of much greater benefits to businesses as a result of the deal.
“This legislation provides more than $600 billion in pro-growth, pro-America tax policies, with key provisions that support more than 21 million jobs,” Ways and Means President Jason Smith (R-Mo.) in a statement released as the deal was announced earlier this week.
The agreement faces an uncertain future in the House of Representatives, which is controlled by the Republican Party, where it is president Mike Johnson (R-Los Angeles) has not yet considered such a measure.
Johnson too Facing pressure of hardline conservatives on government funding and border security ahead of a potential March 1 shutdown, which could complicate the bill’s path out of the House.
Hill’s Tobias Burns has the details here.