{"id":2156555,"date":"2024-01-23T03:17:02","date_gmt":"2024-01-23T08:17:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/heres-how-lawmakers-want-to-pay-for-78-billion-child-tax-credit-and-business-tax-bill\/"},"modified":"2024-01-23T03:21:00","modified_gmt":"2024-01-23T08:21:00","slug":"heres-how-lawmakers-want-to-pay-for-78-billion-child-tax-credit-and-business-tax-bill","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/heres-how-lawmakers-want-to-pay-for-78-billion-child-tax-credit-and-business-tax-bill\/","title":{"rendered":"Lawmakers propose funding $78B child tax credit and business tax bill"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fheres-how-lawmakers-want-to-pay-for-78-billion-child-tax-credit-and-business-tax-bill%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2156555&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The $78 Billion Bipartisan Proposal to Expand the Child Tax \u2064Credit and Renew Key Business Investment Deductions<\/h2>\n<p>The House Ways and Means Committee took \u200da major step towards passing a \u200dbipartisan bill that aims to expand the child tax credit\u2064 and renew important business tax provisions. The $78 billion proposal is designed to be fully paid for through changes to \u200dthe pandemic-era employee\u2064 retention \u200btax credit (ERC).<\/p>\n<p>The bill, which received \u200boverwhelming support in a 40-3 vote, would enhance the child tax credit while also addressing fraudulent\u200d ERC claims. By strengthening\u200d enforcement and penalties, the legislation aims\u200c to save over $77 billion, making it deficit-neutral.<\/p>\n<h3>What is the \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/vance-slams-bolstered-irs-for-slow-walking-refunds-to-small-businesses\/\" title=\"Vance criticizes IRS for delaying refunds to small businesses.\">employee retention tax credit<\/a>?<\/h3>\n<p>The \u200bERC is a payroll tax credit that was introduced to support\u2064 businesses \u200bduring the pandemic and encourage them to retain their employees instead of laying them\u2062 off. However, implementing and determining eligibility \u200bfor the credit proved to be more challenging \u200bthan \u2064anticipated.<\/p>\n<p>Originally \u200dpart of the CARES Act, the ERC has undergone several amendments. It initially provided a 50% credit on \u2062qualified employee wages, with a cap of $10,000 per employee. Over time, the percentage of qualified wages increased to 70% for 2021, and the per-employee\u2064 cap was raised to $10,000 per quarter.<\/p>\n<p>Initially, employers \u2062had to choose between the ERC and the Paycheck Protection Plan \u2063(PPP). However, due to many employers opting for the PPP, policymakers expanded the ERC \u200bto allow businesses\u200c to claim\u2062 both credits.<\/p>\n<p>Unfortunately, the IRS faced a \u2063wave of fraud in late 2022 and 2023, leading to a pause in\u200d processing claims. Promoters and scammers took\u200c advantage of \u2063the credit, causing the need for stricter regulations.<\/p>\n<h3>What changes would the legislation bring?<\/h3>\n<p>The bipartisan legislation negotiated between Ways and Means Chairman Jason Smith and Senate Finance Committee\u2064 Chairman Ron \u200bWyden would\u200b move the filing deadline for backdated ERC claims \u200dto January 31. Currently, taxpayers can claim\u2062 pandemic-related \u200dERC until April 15, 2025.<\/p>\n<p>The \u200blegislation also aims to \u200ccombat fraud by imposing heavier fines on promoters involved \u200din aiding and abetting the \u2063understatement\u200d of business\u200d owners&#8217; tax liability.<\/p>\n<p>While the Joint Committee on Taxation&#8217;s estimate of $77 billion in savings is considered accurate, uncertainties remain regarding the IRS&#8217;s ability to recover funds from ineligible claims and enforce penalties.<\/p>\n<p>The White\u200d House has expressed support for the proposal, with President Joe Biden backing the fully paid-for tax package. The bipartisan\u200d bill is seen as a positive \u2062step towards\u2064 fiscal responsibility and addressing child poverty.<\/p>\n<p> <\/p>\n<h2> How does the Employee Retention \u2062Credit (ERC) provided \u200cunder the CARES Act provide financial relief to businesses affected by the COVID-19 pandemic?<\/h2>\n<p><span>  At was introduced as part of the Coronavirus\u200c Aid, Relief, and Economic Security (CARES) Act in March 2020. The\u200c credit was designed to provide \u2063financial\u2062 relief to businesses that were significantly impacted by the COVID-19\u200b pandemic and had to\u200c either fully\u200b or partially suspend their operations due to government restrictions or experienced a significant \u2064decline in\u200c revenue.<\/p>\n<p>Under the provisions of the CARES Act, eligible employers could claim a tax credit equal to \u206450% of qualifying wages paid to employees, up to a\u200c maximum of $10,000 per employee. The ERC \u200dwas later extended \u200dand expanded through subsequent legislation,\u200b including the Consolidated Appropriations Act\u200d of 2021 and the \u2063American\u2064 Rescue Plan Act\u200b of 2021.<\/p>\n<h3>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/obamas-top-economist-unemployment-benefits-not-lack-of-childcare-could-be-harming-recovery\/\" title=\"Obama\u2019s Top Economist: Unemployment Benefits, Not Lack Of Childcare, Could Be Harming Recovery\">child tax credit expansion<\/a><\/h3>\n<p>The proposed bill would make several significant changes to the child tax credit, with\u200b the aim of providing better support to families\u2062 and reducing child poverty.\u200b Some of \u2062the key provisions of the expansion include:<\/p>\n<ul>\n<li>Increasing the maximum credit amount from $2,000 to $3,000 per\u2064 child, and $3,600 for children under the age of six.<\/li>\n<li>Expanding the age eligibility\u2062 for the credit to include 17-year-olds.<\/li>\n<li>Making the credit fully \u2064refundable,\u200b allowing low-income families who may not have a tax liability to still benefit from the credit.<\/li>\n<li>Providing periodic advance\u200c payments of the credit \u2064to families, which is intended \u2062to provide regular support throughout \u200bthe year rather than \u200ba lump-sum payment\u2063 at tax filing.<\/li>\n<\/ul>\n<p>These changes to the child tax credit are projected to benefit millions of families across the country, particularly those in low-income households. Studies have shown that an expanded and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-eyes-expanding-welfare-state-overturning-clinton-era-reform\/\" title=\"Biden Eyes Expanding Welfare State, Overturning Clinton-Era Reform\">fully refundable child tax credit<\/a>\u200d can significantly reduce child \u200dpoverty rates and improve \u200bthe overall well-being of children.<\/p>\n<h3>Renewal of key <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-and-democrats-announce-600-billion-plan-for-child-tax-credit-and-key-business-breaks\/\" title=\"GOP and Democrats propose 0B plan for child tax credit and business breaks\">business investment deductions<\/a><\/h3>\n<p>Aside from\u2062 the child tax credit expansion, the bill also \u2062includes provisions to \u2064renew critical business tax deductions. This \u200bincludes \u2062the full expansion and extension of the Section 179 expensing limit and the\u2063 five-year extension of the full expensing provision for certain property.<\/p>\n<p>The Section \u2064179 expensing \u200blimit allows businesses to immediately deduct the full cost of qualifying property \u2064(such \u200das equipment and\u200b software) in the\u200c year it is placed in \u200cservice, rather than depreciating it over several years. This\u2064 helps incentivize businesses to invest in new equipment and technology, boosting economic growth and productivity.<\/p>\n<p>The bill\u200d also extends the full expensing provision for certain property, \u200ballowing businesses to deduct 100% of the cost of\u2062 qualified property,\u2063 including \u200bimprovements to existing buildings, \u2062over a\u2062 five-year period. This provision aims to \u200cencourage businesses to make long-term \u200binvestments and contribute to economic recovery and job creation.<\/p>\n<h3>The way forward<\/h3>\n<p>The bipartisan proposal to\u2063 expand the child tax credit and renew key business investment deductions marks a\u200b significant \u2062step towards providing support to families and businesses. By fully\u2062 paying \u2063for the proposal through changes to the employee retention tax credit, the bill aims to ensure that the expansions and renewals are fiscally responsible.<\/p>\n<p>As this proposal moves forward, it\u200c is important for lawmakers to consider the positive impact that an expanded child tax credit can \u200bhave on reducing child poverty and improving child well-being. Additionally, the renewal of business investment deductions can\u200c help stimulate economic growth and job creation, providing much-needed support to struggling businesses.<\/p>\n<p>It is encouraging to see bipartisan \u200bsupport for such measures and their potential to create\u2062 a positive impact on both \u2062families and \u200dbusinesses. The $78 billion proposal represents a significant investment in the future of \u200dour \u200beconomy and the well-being of our children. By passing this proposal, legislators have the opportunity to \u2062make a lasting \u2063difference in the lives of millions of Americans.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The $78 billion bipartisan bill aims to expand child tax credit and renew business investment deductions. It is designed to be fully funded. The House Ways and Means Committee approved the bill with a 40-3 vote, bringing it closer to becoming law. The proposed legislation strengthens existing measures<\/p>\n","protected":false},"author":2683,"featured_media":2315279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2156555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2156555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2156555"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2156555\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2156555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2156555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2156555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}