Surprise! Bipartisan Deal on Child Tax Credit and Corporate Tax Breaks Coming Soon
Bipartisan Deal on Child Tax Credit and Corporate Tax Breaks Coming Soon
In a shocking turn of events, Republicans and Democrats are on the verge of passing a bipartisan bill that would expand the child tax credit and provide tax breaks for corporations. This unexpected deal could have a significant impact on your upcoming tax return.
Key Points of the Deal
Child Tax Credit Boost: The bill proposes increasing the child tax credit from $2,000 per child to a figure between $2,800 and $3,000. This would be a significant increase for families with children.
Corporate Tax Breaks: To entice Democrats, Republicans included tax breaks for corporations in the bill. The exact amount of these breaks is still being negotiated, but it's estimated to be around $40 billion.
Retroactive Application: Both parties want the bill to be retroactive to 2023, meaning the changes would apply to your upcoming tax return. This could lead to a larger refund for many taxpayers.
Funding the Deal
The bill's total cost is estimated to be around $80 billion. To cover this, lawmakers are considering several options, including:
Taking money from the IRS: The bill could divert some of the $80 billion recently allocated to the IRS for hiring new agents and cracking down on tax cheats.
Increasing the "SALT" deduction: This deduction allows taxpayers to deduct state and local income taxes from their federal income taxes. Democrats, who represent states with high income taxes, are pushing for an increase in this deduction, while Republicans are more resistant.
Timeline and Impact
Lawmakers are hoping to finalize the bill before the IRS begins accepting tax returns in late January. If passed, the bill could have a major impact on your tax refund.
Stay tuned for updates: This is a rapidly developing situation, and we expect to hear more details about the bill in the coming days. We'll keep you updated as we learn more about bipartisan deal on child tax credit and corporate tax breaks.
In addition to the above, here are some other interesting points from the video
The deal is being driven by pressure from corporate donors on both sides of the aisle.
Some Democrats are unhappy with the concessions made to Republicans, while some Republicans are concerned about the cost of the bill.
The bill is likely to face opposition from some fiscal conservatives.
Overall, this is a significant development that could have a major impact on taxpayers. We'll continue to follow the story and provide updates as they become available.