Should the government expand social welfare programs, monetarily incentivize businesses that engage in domestic research, and end U.S.-Taiwanese double taxation?

This bill has Passed the House of Representatives
Bill Summary

The Tax Relief for American Families and Workers Act is a sweeping bill that seeks to expand child tax credit provisions, provide disaster relief to affected families and small businesses in the case of events such as floods, provide business tax deductions for eligible domestic research expenditures and expand measures intended to create more affordable housing. The bill also provides immediate relief from double taxation on cross-border investments between the United States and Taiwan and authorizes negotiations to permanently eliminate this double taxation. Sponsor: Rep. Jason Smith (Republican, Missouri, District 8)
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Opponents say

•     "I do rise in opposition to this legislation. And I do so reluctantly because I know the significant amount of work by my friend from Missouri, by those on frankly both sides of the aisle, to reach [sic.] agreement. But unfortunately, as happens in this town, this legislation comes with provisions that, frankly, the people I represent are tired of. And its provisions that would continue to expand the welfare state, as ‘The Wall Street Journal’ editorialized about, by expanding the child tax credit in ways that will continue to fund people directly through refundable credits which we find to be problematic, and we think undermines the kind of economic activity and incentive to work and incentive to, you know, produce value that we think is critically important for economic growth." Source: Rep. Chip Roy (Republican, Texas, District 21)


•    "I could not vote for a deal that so lopsidedly benefits big corporations while failing to ensure a substantial tax cut to middle- and working-class families. This deal is deeply inequitable—at a time when we have seen the greatest rise in inequality with the biggest corporations making super profits at the expense of the consumer. It is a mockery of who [sic.] representative government works for. This bill delivers massive tax cuts for the biggest corporations while denying middle class families the economic security they had under the expanded, monthly Child Tax Credit. This is a reversal of the largest middle-class tax cut in history. The bill provides millions of dollars in tax relief for the wealthy and pennies for the poor. This package is a win for the biggest corporations, who have paid no federal income tax, not the middle-class families who are struggling with the rising cost of living. At a time when big corporations are richer than ever – this deal is not equitable. Families today are living paycheck to paycheck. Their wages have not kept up with rising costs. The economy is not working for them. And – to our great shame – it is children who will suffer the most." Source: Rep. Rosa DeLauro (Democrat, Connecticut, District 3)


•    "I oppose this GOP-led bill that gives billions of dollars in tax breaks to the rich, while leaving behind millions of children living in poverty. Our families deserve so much better than a bill that trades massive tax breaks for the richest Americans for crumbs for a fraction of the poorest children in our country. In the first year, the richest 120,000 households would get a larger share of the tax benefits than the bottom 88 million families. The poorest 20% of families would receive just $60 on average, while the richest .1% get an average of $57,530 in tax breaks. The expanded Child Tax Credit in the American Rescue Plan reached 61 million children and cut child poverty by nearly half, but this deal falls short, and will only reach a fraction of the most vulnerable." Source: Rep. Rashida Tlaib (Democrat, Michigan, District 12)

Proponents say

•    "Most prognosticators would have told you as recently as a month ago that this bill was destined to die in negotiations or collect dust on a shelf if it ever got introduced. Given the sorry state of our political climate, it’s a real victory to have such strong momentum behind this bill that will help 16 million American kids from low-income families get ahead. If I were writing this bill on my own, it would go a lot further in expanding the child tax credit. Nobody is getting everything they want, but given that it had to be bipartisan to have any chance of becoming law, I fought for every dollar for low-income kids that I could get. In the months and years ahead, my Democratic colleagues and I are going to keep fighting for even more improvements to the child tax credit to help even more families. " Source: Sen. Ron Wyden (Democrat, Oregon)


•    "American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs. We even provide disaster relief and cut red tape for small businesses, while ending a COVID-era program that’s costing taxpayers billions in fraud. This legislation locks in over $600 billion in proven pro-growth, pro-America tax policies with key provisions that support over 21 million jobs. I look forward to working with my colleagues to pass this legislation." Source: Rep. Jason Smith (Republican, Missouri, District 8)


•    "This legislation extends critical provisions of the tax cuts and pro-family provisions of the Tax Cuts and Jobs Act enacted under the Trump Administration. The same policies that supercharged America’s historic economy before the pandemic and Joe Biden’s disastrous policies. This tax package provides critical relief to American businesses and workers who are reeling under Bidenomics, protects the Child Tax Credit from abuse, and is fully paid for by ending expensive, Covid-era handouts. I voted in favor of this legislation and am grateful it received broad bipartisan support." Source: Sen. Greg Murphy (Republican, North Carolina, District 3)