The Senate’s senior democratic tax writer said tax break discussions will be part of the Congressional agenda for the upcoming lame duck session and suggested that Democrats may be willing to do some horse trading to move the process along.
“There’s going to be a clear debate about tax choices, and this whole debate about child tax credit is front and center on that discussion,” Senate Finance Committee Chairman Ron Wyden told reporters on November 15, adding that Democrats might support some business tax breaks coveted by Republicans.
For their part, Republicans have pushed for bonus depreciation deductions that allow businesses to write off their equipment purchases in a single year, a deduction for interest expenses and extension of the research and development credit.
The Oregon Democrat said his party would scale back their call for nearly doubling the current $2,000-per-child credit and paying it in monthly installments as part of a roughly $100 billion year-end tax break package. Democrats had originally proposed restoring the 2021 child tax credit and raising it to as much as $3,600 per child and distributed in monthly payments. They would need the support of at least 10 Republicans to bypass any threat of a filibuster.
Some Republican members have said passage of the child tax credit during the lame duck session would depend on what is included in the overall package. Retirement security legislation is a top priority for both parties while increasing the debt limit and possibly making the Tax Cuts and Jobs Act (PL 115-97) permanent have also been floated as possibilities.
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