A group of 51 Democratic lawmakers wrote to House leaders this week urging them to pass a year-end tax bill during the upcoming lame duck session that reinstates the enhanced Child Tax Credit.
The New Democrat Coalition letter also calls for tax relief for research and development expenses for American businesses.
“As economic leaders in Congress, New Dems are urging House leadership to ensure that we move both the enhanced Child Tax Credit and the R&D tax credit fix in any end of year package,” said New Democrat Coalition Chair Suzan DelBene. “Both policies are essential to strengthening our economy, and we should get both across the finish line before the end of the year.”
The election outcome, namely whether Republicans are able to gain control of the House and/or Senate, will likely influence lawmakers’ appetite for negotiation on additional tax relief. The research and development tax credit is an area for potential bipartisan agreement, but Democrats probably need to retain the House and pick up a seat or two in the Senate to reinstate the popular expanded child tax credit enacted as part of the American Rescue Plan (ARP) Act last year.
The universal charitable deduction of $600 for married couples filing jointly and $300 for individual taxpayers expired at the end of 2021, but there is also interest in reinstating the deduction for all of tax year 2022. The universal charitable deduction would likely be part of a package of short-term tax extenders that Congress would consider this fall.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.