$78 Billion Tax Deal Reached

(TotalConservative.com) – After much negotiations in Congress, they’ve finally reached an agreement on a tax deal of nearly $80 billion that will provide benefits for low-income families and businesses.

Republican Rep. Jason Smith, Chairman of the House Ways and Means Committee, and Democratic Sen. Ron Wyden, Chairman of the Senate Finance Committee, finally reached an agreement after negotiating for months over the matter. In a statement following the decision, Smith said that the “bipartisan agreement” would benefit American families by providing “greater tax relief” and strengthening “Main Street businesses,” as well as boosting “competitiveness with China” and creating more jobs.

Smith said the tax deal will also include disaster relief funds and “cut red tape for small businesses” and end a pandemic-era program “costing taxpayers billions in fraud.”

The deal will still have to pass through the Democrat-dominated Senate and the Republican-dominated House before it arrives at President Joe Biden’s desk to be signed, and at a time when lawmakers are still scrambling to keep the government from shutting down.

The package, which is approximately $78 billion, would expand the Child Tax Credit temporarily, as well as boost the tax credit for low-income housing and bring back certain deductions on filings for companies. The expanded disaster relief will most likely include benefits for Taiwanese semiconductor production companies that operate out of the US, which is significant because there have been serious shortages of the microchips used in many electronic systems.

The deal also entails cutting the employee retention tax credit implemented during the 2020 pandemic to assist businesses and avoid layoffs.

The agreement is perhaps a sign of hope, as there are few issues in the nation currently receiving bipartisan support and agreement. The decision also comes while Congress continues to scramble over how to stop a potential partial government shutdown with short-term spending bills to keep it funded until March. Some of that funding is already expiring this month.

Copyright 2024, TotalConservative.com