Senate Leader Chuck Schumer is challenging Republicans to vote on a bipartisan tax cut package aimed at expanding the child tax credit and restoring business tax breaks. Republicans are hesitant, believing they will have more leverage if their party wins the White House and Congress in November. The tax cut package passed under Republican control in 2017 is set to expire after 2025, making tax issues a focal point.
The $79 billion package, which passed the House in January, aims to benefit low-income families by enhancing the child tax credit. It would also restore deductions for businesses on new equipment and research expenses. The changes in the child tax credit could lift 500,000 families out of poverty and benefit 16 million children.
The bill is funded by expediting the deadline for companies to submit retroactive claims for retaining employees during the pandemic. Despite lacking support to overcome procedural hurdles, Schumer is pushing for a vote, seizing the opportunity during the election season.
Democrats are countering claims that they are 'anti-family' and highlighting their efforts to bolster the child tax credit. Republicans argue that the bill should have undergone a Senate committee hearing before being brought to the floor.
While some Republicans may vote for the measure, it is unlikely to meet the 60-vote threshold needed for advancement. Republicans believe they will have a stronger bill next year if they secure the majority. They are confident that voters recognize their track record on tax cuts and anticipate extending them if they regain control.
