Shenango Valley News

WASHINGTON, D.C. -- The Tax Relief for American Families and Workers Act, a bipartisan legislation aimed at promoting the financial security of working families, boosting growth and American competitiveness, and strengthening communities and Main Street businesses, has passed the House of Representatives with an overwhelming vote of 357-70. The bill will now be considered by the Senate.

Representative Mike Kelly, Chairman of the Ways and Means Subcommittee on Tax, expressed his enthusiasm for the passage of the bill, stating, "This vote is a major step forward toward extending the 2017 tax cuts that spurred the greatest American economy in a half-century." He further highlighted the benefits of the bill, including pro-growth tax policies, the enhancement of the Child Tax Credit, and the promotion of American competitiveness.

The Tax Relief for American Families and Workers Act encompasses several key provisions that aim to support working families, enhance innovation and competitiveness, build up Main Street businesses, and eliminate fraud and waste. Some of these provisions include:

- Support for working families through an enhanced Child Tax Credit, which includes a phased increase to the refundable portion of the credit for 2023, 2024, and 2025. The bill also eliminates the penalty for larger families and allows flexibility for taxpayers to use either current or prior-year income to calculate the credit.

- Expansion of innovation and competitiveness through pro-growth economic policies such as Research & Development (R&D) expensing. This provision allows businesses of all sizes to immediately deduct the cost of their U.S.-based R&D investments, encouraging American innovation and improving our competitive position against countries like China. The bill also addresses interest deductibility and restores full and immediate expensing for investments in machines, equipment, and vehicles.

- Building up Main Street and assisting communities struck by disasters through various measures. These include an increase in the small business expensing cap, a reduction in red tape for small businesses that use subcontract labor, and the provision of disaster tax relief to address recent hurricanes, flooding, wildfires, and the Ohio rail disaster.

- Increasing the supply of low-income housing through the enhancement of the Low-Income Housing Tax Credit, which includes increased state allocations and a reduced tax-exempt bond financing requirement.

- Elimination of fraud and waste by ending the Employee Retention Tax Credit program, resulting in significant taxpayer savings of over $70 billion. This measure accelerates the deadline for filing backdated claims under the COVID-era employee retention tax credit, a program that has experienced major cost overruns and fraud.

The Tax Relief for American Families and Workers Act represents a comprehensive approach to address key issues affecting working families, businesses, and communities. Its passage in the House of Representatives signifies a significant step towards its enactment.