End-of-Year Bipartisan Tax Package
Last week, House GOP Ways and Means Committee Chair Jason Smith (R-Mo.) conveyed his optimism on the prospect of a year-end tax package. Richard Neal (D-Mass.) suggested the impeachment inquiry of President Biden may get in the way of tax negotiations. Nonetheless, Senate Finance Committee Chair, Ron Wyden (D.-Ore) indicated that Democrats are willing to move forward in a constructive way, but signaled he wants to see a child tax credit proposal proportional to the business tax breaks.
Meanwhile, the House GOP tax package, which raises the standard deduction by $2,000 for individual filers and $4,000 for joint filers for tax years 2024 and 2025, remains stalled over the state-and-local tax (“SALT”) deduction cap. GOP members of the bipartisan SALT Caucus (including members from New York and California) dedicated to reinstating the state-and-local tax deduction that the 2017 tax law capped at $10,000—are blocking their party’s tax bills from full House passage because it does not address the issue. While that legislation has no chance of passing the Democratic-controlled Senate, some measures could be wrapped into bipartisan end-of-the-year legislation to include expired business tax extenders like the research and development tax break, tax credits for affordable housing, and the child tax credit.
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