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WASHINGTON (NEXSTAR) – A new bipartisan tax bill could put some money back in your pocket this tax season, if the lawmakers behind it can get their colleagues on board.
Republican Congressman Jason Smith of Missouri and Democratic Senator Ron Wyden of Oregon just announced a tax deal that would expand the child tax credit and revive some tax cuts for businesses.
“Given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead,” said Wyden.
Chuck Marr is the Vice President for Federal Tax Policy at the Center on Budget and Policy Priorities. He’s celebrating the deal and the impact he insists it would make for families.
“Really would have significant benefits,” Marr said. “16 million children in low-income families would be made better off. Roughly 400 thousand, 500 thousand of them would be lifted above the poverty line.”
Specifically, the bill would increase the child tax credit to a maximum of $2,000 per child. For some that would be a meaningful bump.
“It helps put food on the table for their children, clothes, school supplies, everything. Essential,” Marr said.
The bill would also restore tax cuts for businesses, including reductions for research and development costs and bigger write offs for small business investments.
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs,” Rep. Smith said.
Overall the deal is estimated to cost around $80 billion. The lawmakers plan to pay for that by ending the COVID-era employee retention tax credit program, which they say is a target for fraud.
Wyden and Smith still have work to do to get enough support to pass the deal. But some of their colleagues are already praising the bill.
Congressman Henry Cuellar (D-Texas) says he plans to support it.