House GOP Moves Forward with $78 Billion Tax Package Despite Internal Divisions
House Republican leaders are pushing ahead with a bipartisan tax package worth $78 billion, even as disagreements persist among party members. The package includes both an expansion of the child tax credit, a priority for Democrats, and the restoration of certain business tax breaks favored by Republicans.
Speaker Mike Johnson announced plans to bring the bill to the House floor under a suspension of the rules, requiring a two-thirds majority for passage. While acknowledging concerns from some members, Johnson expressed confidence in bipartisan support for the bill.
The bill, negotiated by House Ways and Means Committee Chairman Jason Smith, seeks to strike a balance between Democratic and Republican priorities. However, some Republicans have voiced objections. House Freedom Caucus Chairman Bob Good raised concerns about expanding the child tax credit to individuals who don’t pay taxes, including the potential eligibility for illegal immigrants. Other members, like GOP Rep. Byron Donalds, remain undecided and seek further clarification on certain aspects of the bill.
On the Democratic side, some lawmakers oppose the bill for not going far enough in broadening eligibility for the child tax credit. The package aims to temporarily increase the credit for lower-income families and adjust it for inflation starting in 2024.
Additionally, there’s disagreement over the state and local tax (SALT) deduction cap, with some Republicans from blue states advocating for an increase. However, raising the cap would come at a significant cost and add to the deficit, complicating negotiations.
Despite internal divisions, House GOP Whip Tom Emmer emphasized that such disagreements are a normal part of the legislative process. The fate of the tax package remains uncertain as discussions continue among lawmakers.
The current proposal also includes an acceleration of the deadline for businesses to file for a Covid-19-era employer tax credit, which partially offsets the package’s cost. However, the ongoing debate over the child tax credit expansion and the SALT deduction cap underscores broader divisions within the Republican Party over tax policy.
