June 22, 2024

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Bigger Bucks for Families, Tax Breaks for Businesses: House Passes Tax Bill, But Senate Vote Unclear

2 min read
The House voted to expand the child tax credit and offer tax breaks for businesses, but the Senate vote is uncertain. This article explains what's in the bill, how much it would cost, and what it could mean for you and your family.
Tax Breaks

Bigger Bucks for Families, Tax Breaks for Businesses: House Passes Tax Bill, But Senate Vote Unclear

Uncle Sam might be giving American families a bit more breathing room, and businesses could get a tax break under a bill passed by the House of Representatives. But before you start budgeting that extra cash, there’s a hurdle to clear: the Senate.

What’s in the bill?

The Tax Relief for American Families and Workers Act of 2024 packs two main punches:

  • Expanded child tax credit: The credit, currently capped at $1,600 per child, would jump to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025. This is smaller than the generous pandemic-era boost, but still welcome news for parents.
  • Business tax breaks: The bill throws several lifelines to businesses, including immediate deductions for research and development investments made in the U.S. This could incentivize companies to innovate and keep jobs domestic.

How much will it cost?

The nonpartisan Congressional Budget Office estimates the bill would cost about $78 billion over the next decade. That’s not pocket change, but proponents argue it’s a worthy investment in families and American competitiveness.

What are the chances of it passing the Senate?

The House vote was overwhelmingly bipartisan, but the Senate is a different beast. Democrats might push for a larger child tax credit, while Republicans could balk at the overall price tag. Negotiations are likely, and the bill’s final shape – or even its passage – remains uncertain.

What does this mean for me?

If you have kids, keep an eye out for updates on the child tax credit. The expanded credit wouldn’t kick in until next year, but it could mean hundreds of extra dollars per child. As for businesses, the potential tax breaks could be a boon for investment and job creation. But again, don’t celebrate just yet – the Senate has the final say.

Remember: This is just a snapshot of the bill. Stay tuned for further developments and consult with a tax professional for personalized advice.

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