U.S. Sen. Ron Wyden (D-OR), chair of Senate Finance Committee, and U.S. Rep. Jason Smith (R-MO), chair of the House Ways and Means Committee, put forth a framework for a new tax proposal.
The bipartisan framework, which will be introduced as The Tax Relief for American Families and Workers Act of 2024, seeks to support working families, boost growth and American competitiveness, and strengthen communities and Main Street businesses.
In summary, the bill would do the following:
• Support working families with an enhanced Child Tax Credit;
• Expand innovation and competitiveness with pro-growth economic policies like R&D expensing;
• Build up Main Street by cutting red tape and rebuild communities struck by disasters with tax relief;
• Enhance the Low-Income Housing Tax Credit; and
• Eliminate fraud and waste by ending the Employee Retention Tax Credit program.
“Sixteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead. At a time when so many people in Oregon and all across America are getting clobbered by rising rents and home prices, the improvements this plan makes to the Low-Income Housing Tax Credit will build more than 200,000 new affordable housing units. By incentivizing R&D, this plan is also going to promote innovation and help sharpen our economic competitiveness with China and the rest of the world,” Wyden said.
Smith added that the bill would lock in over $600 billion in pro-growth tax policies with key provisions that support over 21 million jobs.
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs. We even provide disaster relief and cut red tape for small businesses, while ending a COVID-era program that’s costing taxpayers billions in fraud,” Smith said.
The bill also has the support of Rep. Mike Kelly (R-PA), the chair of the Ways & Means Subcommittee on Tax.
“This package includes pro-growth tax policies, including the critical research & development expensing provision so American companies can invest and grow here at home. It allows American companies and workers to be more competitive with China. And, it boosts the Republican-created Child Tax Credit, which strengthens and supports families. This deal locks in $600 billion in proven pro-growth, pro-American policies that will give American companies a major boost in the years to come,” Kelly said.