A Conservative Tax Deal for American Working Families

Last week, the House notched a rare, bipartisan win by enacting a new, conservative tax deal that will help small businesses and American working families achieve relief in our inflationary economy. The Tax Relief for American Families and Workers Act, which passed the House by a large margin of 356 in favor to 70 opposed, would fix research and development tax credits and enact a conservative child tax credit with a work requirement for parents.

Unfortunately, the deal remains in limbo as the Senate debates other issues.

The bipartisan tax deal would benefit hard working American families, many of whom are struggling with the costs of inflation and supply chain challenges globally.  This is a pro-family tax policy that deserves to be passed. 

The Child Tax Credit changes in law, if passed by the Senate, would temporarily increase the CTC to match inflation — the significantly larger increase in 2021 led to almost 3 million children rising out of poverty. It’s also largely paid for by the elimination of the employee retention tax credit.

The R&D tax credits are an adjustment of a 2017 tax law provision that required companies to amortize their research expenses over five years, instead of the year those costs were incurred.

The R&D provisions also change the eligibility standards, so that these benefits are accessible not just to already successful corporations, but also benefit small businesses and startups that keeps our nation among the most innovative in the world.

It also continues full expensing for capital equipment and machinery, which is vitally important to bring and maintain industry at home.

The polls are in. American workers and families across the country and across party lines, support an expanded child credit and support incentivizing homegrown innovation. Failing to pass this deal would hurt American families.

The Senate should quit arguing about politics and take this tax deal to the floor today.