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January 31, 2024 at 03:53 PM
House Republicans are considering moving a second tax bill “in parallel” with the $78 billion Tax Relief for American Families and Workers Act of 2024 providing ”relief” from the $10,000 state and local tax deduction cap, the Capitol Hill newspaper Roll Call reported Tuesday evening.
The Tax Relief for American Families and Workers Act, which includes 100% bonus depreciation, as well as research and development expensing, and also expands the Child Tax Credit, passed the House Wednesday night. It was negotiated by House Ways and Means Chairman Jason Smith, R-Mo., and Senate Finance Chair Ron Wyden, D-Ore.
The House Ways and Means Committee passed the bill by a 40-3 vote on Jan. 19.
Lawmakers have discussed doubling the cap to $20,000 for couples, Roll Call reported. Citing “a source familiar with the negotiations,” it added that the expansion would be paired with “a requirement that parents collecting the child tax credit provide a Social Security number” — an attempt to offset the cost of raising the SALT cap and to placate House Freedom Caucus members concerned about undocumented immigrant parents collecting the credit.
The SALT cap, part of the 2017 tax overhaul during the Trump administration, has long been criticized and targeted by lawmakers from high-tax states like New York and California.
On Tuesday, The Hill reported that “four moderate New York Republicans voted against a procedural rule vote on unrelated bills as a warning shot to House GOP leaders in order to protest an increase of the SALT deduction — a top priority for many blue-state Republicans — not being included” in the tax bill.
