Bipartisan legislation to cut taxes for working families and extend certain corporate tax breaks has stalled in the Senate over Republican opposition. But the bill\u2019s prospects could be growing rosier as lawmakers prepare to return to Washington next week from a long recess.Privately, some GOP lawmakers have said they\u2019re increasingly willing to support the bill with small changes that the measure\u2019s Democratic sponsor has already offered, according to four people involved in the conversations who spoke on the condition of anonymity to discuss private talks.In a sign of possible momentum, Senate Majority Leader Charles E. Schumer (D-N.Y.) wrote to lawmakers Friday that the upper chamber could consider the bill \u2014 along with measures to regulate TikTok, address rail safety and lower health-care costs \u2014 \u201cin the weeks and months ahead.\u201dOnce the Senate wraps up impeachment proceedings against Homeland Security Secretary Alejandro Mayorkas, expected to take up most of lawmakers\u2019 time next week, Schumer could put the tax bill to a vote on or shortly after the April 15 tax deadline.The $79 billion legislation pairs an expansion to the child tax credit \u2014 a major priority for President Biden and Democrats that nonpartisan estimates say would lift 400,000 children out of poverty \u2014 with business tax incentives initially authorized in 2017 under President Donald Trump.The Internal Revenue Service has said it could apply the credit retroactively, but lawmakers have still been eyeing the filing deadline as a possible time peg for action on the measure.It was the product of a deal struck between Sen. Ron Wyden (D-Ore.) and Rep. Jason T. Smith (R-Mo.), the chairs of Congress\u2019s tax-writing committees, after seven months of talks, and it passed the House with broad bipartisan support in January.The bill has run into opposition from Sen. Mike Crapo (Idaho), Wyden\u2019s Republican counterpart on the Finance Committee, over a provision that would allow low-income families to use a prior year\u2019s return to earn a larger tax credit. Many Republicans have publicly followed Crapo\u2019s lead, hoping to give him more leverage to seek changes to the legislation that dial back the credit for families.Privately, though, numerous Republican senators say they could support the legislation without some of those changes, but don\u2019t want to outwardly break with a well-liked and powerful member of their caucus, the four people who have discussed the measure with them said.These people \u2014 three lobbyists and a senior GOP Senate staffer who have had in-depth conversations with lawmakers and senior staffers about the bill \u2014 said that in private, a sufficient number of Republicans to overcome a filibuster support the legislation, but many of them do not want to cross Crapo and other GOP leaders who hope to extract more concessions from Wyden and Smith.\u201cThe thing that we see differently now is there does not seem to be the willingness that anyone is going roll Crapo,\u201d one of those people said. \u201cThat\u2019s pretty clear from Republicans now. We see that the path forward for this bill is that concessions need to be made.\u201dA left-leaning advocacy group had a similar read.\u201cWe\u2019ve had conversations with over a dozen Republican Senate offices and heard significant support for the bipartisan tax package and enthusiasm both for the [research-and-development] credit as well as for the child tax credit provision,\u201d Adam Ruben, director of Economic Security Project Action. \u201cI would predict that if this comes to a vote, I think the votes are there. \u2026 Will it come to a vote [and overcome a GOP filibuster threat] is another question.\u201dWyden offered to alter the legislation to address some of Crapo\u2019s concerns, swapping out the \u201clook back\u201d section and instead further expanding eligibility for the poorest families who qualify for the credit. Crapo rejected that offer: He has said negotiations with Wyden were \u201cat a standstill.\u201d\u201cThe issue set is the same issue set that\u2019s been out there for a couple of weeks now,\u201d Crapo told The Washington Post before Congress went on recess at the end of March.Ultimately, public support for the bill hinges on Crapo\u2019s stance in negotiations, the people and multiple lawmakers said. Lawmakers say Crapo, who is in line to chair the Finance Committee if Republicans retake the Senate in November\u2019s elections, is eyeing a larger tax package in 2025 that could contain more conservative policies and hopes to use the prospect of a GOP-written tax plan next year to extract more changes from Wyden \u2014 or defeat the measure entirely.Trillions of dollars in tax cuts enacted under Trump are slated to expire at the end of 2025, which means Congress will probably be working on tax policy next year regardless of who wins the elections.\u201cI think Crapo wants to make it better,\u201d Sen. Lindsey Graham (R-S.C.) said. \u201cI like to help people raising children with the child tax credit, and there\u2019s a bunch of other business things in there that I hear a lot about from my constituents. But with work requirements, there\u2019s some things that Crapo wants to do and I sort of trust his judgment.\u201dAnother key Republican, Sen. Mike Rounds (S.D.), echoed that sentiment.\u201cI have spoken with our ranking member, Mike Crapo, and I don\u2019t think it\u2019s ready for prime time yet,\u201d Rounds said. \u201cI think they\u2019re still negotiating. But I\u2019ll take my cue right now based on what his analysis is.\u201dWyden is still offering to drop the ability for taxpayers to use a previous year\u2019s return to quality if it will draw Republicans on board.\u201cWhile I think the policy is important, I\u2019ve offered to take it out of the bill if it gets this over the finish line,\u201d he said during a committee hearing in late March. \u201cWorking with groups, we have found a way to do this and still lift the same number of kids out of poverty. As of this morning, my offer on the look back is still on the table.\u201dSome key Republicans hope Wyden succeeds. A high-profile Finance Committee member, Sen. Todd Young (R-Ind.), urged Senate leaders to move forward even if Crapo cannot secure more changes to the legislation. And a member of GOP leadership, Sen. Steve Daines (Mont.), has said the bill even without changes was \u201cvery important for global competitiveness\u201d because of the corporate tax provisions.The new legislation would expand the child tax credit to allow low-income families to claim the benefit for multiple children; under current law, the lowest-earning families can only receive the credit for one child. Starting in 2025, for the 2024 tax year, the benefit would be linked to inflation, which would add up to a roughly $100 boost next year.The proposed larger refundable tax credits for more low-income parents could lift 400,000 children out of poverty, according to nonpartisan estimates. And Democrats and Republicans alike have cheered provisions that would allow businesses to write off research-and-development and interest expenses and investments in new equipment.The tax credit was expanded temporarily in 2021, increasing the amount it provided and extending eligibility. Those changes kept 3 million children out of poverty, according to research conducted by Columbia University\u2019s Center on Poverty & Social Policy. But the expansion expired at the end of 2021, and child poverty rates jumped back up after that.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bipartisan legislation to cut taxes for working families and extend certain corporate tax breaks has stalled in the Senate over Republican opposition. The bill includes an expansion of the child tax credit, which could lift 400,000 children out of poverty. Senate Majority Leader Charles E. Schumer has indicated that the bill could be considered for a vote after the April 15 tax deadline. Some GOP lawmakers are willing to support the bill with small changes that the Democratic sponsor has offered, but negotiations with Sen. Mike Crapo have been at a standstill. Trillions of dollars in tax cuts enacted under President Trump are set to expire in 2025, leading to discussions about future tax policy.<\/p>\n","protected":false},"author":6,"featured_media":7163,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1521,492,3492,5352,186,4477,5292,1240,5047,2577,4498,2511,1381,3185,4117,3818,166,1167,153,1312,3644,569,4081,210,3895,4407,2294,67,899,3752,3441,3940,2685,1864,4833,323,4843,3360,4753,3532,1022,1005,1222,827,4441,1358,1026,1065,4505,3778,3358,3607,3844,4918,1183,1846,1875,841,1681,1774,3519,3770,5351,2366],"class_list":["post-7162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-1521","tag-biden","tag-bill","tag-bipartisan-legislation","tag-business","tag-charles","tag-children","tag-clear","tag-competitiveness","tag-concerns","tag-corporate-tax","tag-costs","tag-deadline","tag-defeat","tag-democrats","tag-development","tag-donald-trump","tag-draw","tag-elections","tag-expansion","tag-expenses","tag-finance","tag-future","tag-health","tag-hearing","tag-hope","tag-income","tag-inflation","tag-interest","tag-investments","tag-judgment","tag-leaders","tag-legislation","tag-negotiations","tag-policy","tag-poverty","tag-president","tag-president-biden","tag-project","tag-public-support","tag-republican","tag-republicans","tag-safety","tag-security","tag-service","tag-support","tag-talks","tag-tax","tag-tax-breaks","tag-tax-credits","tag-tax-cuts","tag-tax-incentives","tag-tax-plan","tag-tax-policy","tag-taxes","tag-threat","tag-tiktok","tag-trump","tag-trust","tag-vote","tag-washington","tag-willingness","tag-working-families","tag-writing"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n