House Passes $78 Billion Tax Relief Bill

The House of Representatives passed bipartisan legislation expanding the child tax credit.

The Tax Relief for American Families and Workers Act passed by a vote of 357-70. Forty-seven Republicans and 23 Democrats voted against the bill.

If the bill becomes law, the package would temporarily include a “phased-in annual increase of the child tax credit’s maximum refundable amount from $1,600 until it hits $2,000 for 2025, its final year,” Fox News Digital reported.

The bill also increases businesses’ ability to expense research and development costs if done in the United States to incentivize U.S. manufacturing.

House Speaker Mike Johnson (R-LA) said in a statement, “The Tax Relief for American Families and Workers Act is important bipartisan legislation to revive conservative pro-growth tax reform. Crucially, the bill also ends a wasteful COVID-era program, saving taxpayers tens of billions of dollars.”

The bill was led by House Ways and Means Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR).

Smith said of the bill, “The Tax Relief for American Families & Workers Act is pro-growth, pro-jobs, pro-American. The legislation locks in $600 billion in pro-growth tax policies by restoring three key provisions from President Trump’s successful 2017 tax reform that had a proven record of creating millions of jobs, raising workers’ wages, and sparking more investment and economic growth right here at home.”

Some Republicans did not vote in support of the bill, saying it expands the welfare state.

“The plan, basically, will actually increase welfare benefits by providing the extension child tax credit or an income tax credit,” said Rep. Andy Biggs (R-AZ). “Who’s gonna get that? Children of illegal aliens. And that’s going to be hundreds of billions of dollars over time.”

Rep. Chip Roy (R-TX) also voted against the bill due to its welfare benefits.

“Unfortunately, as happens in this town, this legislation comes with provisions that, frankly, the people I represent are tired of,” he said, adding, “And it’s provisions that would continue to expand the welfare state, as ‘The Wall Street Journal’ editorialized about, by expanding the child tax credit in ways that will continue to fund people directly through refundable credits which we find to be problematic, and we think undermines the kind of economic activity and incentive to work and incentive to, you know, produce value that we think is critically important for economic growth.”