US House Passes $79B Bipartisan Tax Bill

0:00

/1861

1×

Facts

• By a 357-70 vote margin, the US House of Representatives on Wednesday passed the Tax Relief for American Families and Workers Act 2024. 188 Democrats and 169 Republicans voted for the bill, with 23 Democrats and 47 Republicans respectively voting against the legislation.¹
• The bill allows an increase in maximum refundable child credit for tax returns from $1.4K in the 2022 tax year to $1.8K in 2023, $1.9K in 2024, and $2K in 2025. Topline child tax credit will also be adjusted as per cost of living inflation.²
• The bill delays the date of required tax deductions for domestic research or experimental costs until Dec. 31, 2025, while also extending applications concerning earnings before interest, taxes, depreciation, and amortization (EBITDA) to taxable years between Dec. 31, 2023, and Jan. 1, 2026.²
• Taiwan residents will also see a relaxation of US taxation rules, including a reduction of withholding taxes on income from US sources from 30% to 10% for interests and royalties and 15% for dividends respectively.²
• Further policies include the exclusion of East Palestine train derailment relief payments from gross income, the extension of the Taxpayer Certainty and Disaster Relief Act 2020, and the restoration of a higher Low-Income Housing Credit ceiling.²
• The legislation in total proposes approximately US$79B in tax cuts. House Speaker Mike Johnson (R-La.) described the bill as 'conservative pro-growth tax reform.' The bill must still pass through Congress' second chamber, the Senate.³

Sources: ¹clerk.house.gov, ²congress.gov and ³Associated Press.

Narratives

• Pro-establishment narrative, as provided by POLITICO. Despite an uncertain future in the Senate, the bill should be a much-celebrated moment of rare bipartisanship in what is usually a cagey and divided House. While some opposition to the bill inevitably remains on both sides, moderates in the House have done what many deemed impossible and bridged the political divide for the benefit of the American people.
• Establishment-critical narrative, as provided by The Washington Times. Beyond its title, there's little to celebrate concerning the House's intentionally deceitful bill. Under the veil of taxation reduction, 91.5% of the bill's impact will not be found within the pockets of America's typical household. Rather, the legislation de facto expands welfare eligibility which is harmful from a workforce and immigration perspective. Once again, Congress continues to ignore the average American citizen.

Predictions