House Passed Tax Bill Advances in the Senate

Senate Republicans are working on a set of policies to push for inclusion in the $79 billion House-passed family and business tax breaks package, as Finance Chair Wyden (D-OR) indicated he would be open to adding to the bill. The package, which passed the House in January, would revive a trio of business tax credits, and expand the child tax credit, including permitting families with more than one child to qualify for more of the credit faster. It would also boost low-income housing tax credits, provide tax relief for disaster victims, and extend tax treaty-like benefits to U.S. companies operating in Taiwan. Several Senate Finance Republicans, including ranking member Crapo (R-ID), said they want a provision allowing parents to use the previous year’s income to qualify for the child tax credit to be removed. They argue that language would allow some taxpayers without earnings that year to benefit, running contrary to their goal of preserving a work incentive.