A bill to expand the child tax credit and restore some tax breaks for businesses failed to advance in the Senate on Thursday, as Republicans mostly opposed the measure. Majority Leader Chuck Schumer challenged Republicans to vote against the tax cut package, highlighting the benefits it would provide to low-income families and local businesses. Despite this, the bill fell short of the 60 votes needed to move forward, with only three Republicans joining Democrats in support.
Both parties are using this issue to appeal to voters ahead of the November elections. Schumer emphasized the Republicans’ blocking of tax cuts that would benefit millions of families and businesses, countering claims that Democrats are “anti-family.” The bill, totaling $79 billion, aims to make the child tax credit more available to low-income families by gradually increasing the refundable portion. However, Senate Republican leader Mitch McConnell criticized the changes, calling them “cash welfare” rather than relief for working taxpayers.
The bill, crafted by Rep. Jason Smith and Sen. Ron Wyden, would restore tax breaks for businesses that were previously cut under the 2017 tax bill. However, it faced opposition in the Senate, with Republicans pushing for the bill to go through the Finance Committee for further review. The changes to the child tax credit could potentially lift hundreds of thousands of families out of poverty, according to the Center on Budget and Policy Priorities. The bill would be funded by expediting the cutoff date for companies to submit retroactive claims for keeping employees on payrolls during the pandemic.
The issue of the child tax credit became a focal point for Democrats as they aimed to counter claims made by Republican senator JD Vance and the party’s stance on family policies. Vance suggested that the Biden administration was against the child tax credit, despite their efforts to expand it during the pandemic. Schumer dismissed Vance’s claims as “nonsense” and highlighted the Democrats’ achievements in expanding the credit. However, the bill ultimately failed to gain enough support in the Senate, leading to mixed reactions from lawmakers on both sides.
While Democratic Senators like Sherrod Brown and Bob Casey supported the bill, Republicans criticized it as a political move to score points ahead of the elections. Sen. John Thune expressed confidence that Republicans could secure a stronger bill next year if they regained the majority. Despite disagreements on the bill’s provisions, both parties are using the issue to appeal to voters, with Republicans emphasizing their previous tax cuts and Democrats promoting their efforts to support families and businesses. The fate of the child tax credit expansion and business tax breaks remains uncertain as political tensions continue to influence legislative decisions.
