WASHINGTON — Senate Republicans are inching closer to passing a bipartisan bill that expands the child tax credit and provides forbearance for businesses, a set of demands most likely to upset the coalition that made House passage possible. is out.
The $78 billion bill was negotiated by House Ways and Means Committee Chairman Jason Smith (R-Missouri) and Senate Finance Committee Chairman Ron Wyden (D-Ore.) and passed by the Republican-led party in January. It passed the House by a vote of 357-70. It's a rare feat in a divided Congress that struggles to function. However, the bill remains stagnant in the Senate, where leading Republicans have said they will repeal the bill unless major amendments are included. Senate Democrats have 51 seats and need 60 votes to break the filibuster.
But as tax filing season draws to a close and election-year politics heats up, there's no sign of a resolution in sight. Democratic leaders are eager to pass the bill, which one analysis estimates would benefit about 16 million children from low-income households. Some Republicans have publicly warned that it could sink.
Sen. Thom Tillis, RN.C., a member of the Finance Committee, said he would be happy to see the entire tax bill repealed.
“I hope so,” Tillis said, adding that the bill lacks the 60 votes needed to pass the Senate today.
“I honestly don't see a path forward for them unless Sen. Crapo shows they're negotiating in good faith,” he said, referring to Mike Crapo of Idaho, the top Republican on the Finance Committee. However, he said. “If it’s just a vote on the floor, I don’t think there’s a path for them.”
The bill would expand the child tax credit, remove the $1,600 refundable limit and adjust it for inflation, with the biggest benefits going to low-income, multi-child families. The bill also includes some business tax breaks, such as for research and development and small business expenses, which were key to winning Republican support in the House.
Many Republican senators, including Minority Leader Mitch McConnell (R-Ky.), are entrusting the future path to Mr. Crapo.
Crapo told NBC News on Tuesday that there are still issues with “many” provisions. He argued that the current language weakens work requirements and said he wants to eliminate the “retroactive” policy that allows taxpayers to use previous year's income if they qualify for a larger child tax credit. He said the bill “creates entitlement spending that creates significant deficits,” and called for spending cuts to pay for the child tax credit expansion.
“These are just the beginning,” Crapo said, adding that he likes the corporate tax cuts. However, regarding the individual tax provisions: And we can't make any kind of predictions at least until we get some engagement on this issue. ”
Sen. Chuck Grassley (R-Iowa), ranking member of the Finance Committee, said he agrees with Crapo about limiting the terms of the child credit.
Asked if the bill had been repealed, he said it was not his place to announce it. “I can't say that until Crapo says it,” Grassley said. “Crapo is the man who has to say that.”
The demands are difficult. Crapo said he was not satisfied with using changes to the employee retention tax credit as an offset. To let go of that idea, you need to start over.
Rep. Richard Neal (D-Mass.), ranking member of the Taxation, Law, and Revenue Committee, warned that major changes in the Senate would split the coalition in the House. He said there is “no question” that Senate Republicans are seeking to defeat legislation that would deny President Joe Biden's election-year accomplishments.
Sen. Josh Hawley (R-Missouri) will add the Radiation Exposure Compensation Act to the tax bill to benefit people injured in uranium mining and the Manhattan Project, the World War II atomic bomb project. proposed to do so and said it could cause an atomic bomb. Republican vote.
“To me, this tax bill looks like it's in very deep trouble,” he said Tuesday. “It's on life support. So I think if we put them together, we might get some help. I know that'll get my vote.”
But Crapo quickly dismissed the idea.
“I would support the bill if the provisions are amended,” he said. Even if the Radiation Compensation Act is added, “the fundamental bill will not be amended.”
Sen. Ron Wyden (D-Ore.), chairman of the Finance Committee, said he hoped to pass the bill “months ago” but wasn't giving up and expressed frustration with negotiations with Republicans. did.
Mr. Wyden said in an interview that he had offered to make the biggest demands on Republicans, but that he had not been able to change course enough.
“If I had my way, this would have been done months ago. And the reality is this is not what Senate Republicans wanted to do,” Wyden said. “In a recent exchange, I told them each Republican senator's number one request, and that was to eliminate looking back. I told them that we don't get a single vote from a Democrat in the Senate. We were given what we would have been given. No 1. We are done. We continue to strive to find common ground.”
Wyden urged senators to support the package, touting its widespread benefits to families, businesses and taxpayers through anti-fraud measures.
“Are we going to let this fraud go unchecked?” Wyden said. “Are we going to say no to 16 million young people? We're going to say no to small businesses and yes to small businesses. [Donald Trump] Will it be a presidential campaign based on being more sympathetic to the tax needs of billionaires? ”
Senate Majority Leader Chuck Schumer, D-N.Y., did not respond Tuesday when asked whether he would bring the bill to a floor vote.
“Look, I'm all for this package. If we have enough votes to move it in the right direction, then yes, we'll try to get it to the floor,” Schumer told reporters at his weekly news conference. told. “But at this point, we don't think they're going to get enough votes. The sponsors are trying to see if there are enough votes.”