Top lawmakers in Congress have announced a bipartisan tax deal that aims to provide relief to families and boost businesses. The $78 billion package, unveiled by Senate Finance Committee Chairman Ron Wyden and House Ways and Means Committee Chairman Jason Smith, includes several key provisions.

Expanding the Child Tax Credit

The proposed tax deal seeks to expand access to the child tax credit, benefiting low-income families. It also eliminates the penalty for larger families, bringing much-needed relief to parents. According to Wyden, this plan will improve the lives of over 15 million children from low-income families.

Promoting Pro-Family Policies

Wyden emphasizes the significance of passing pro-family policies in today's challenging political climate. The tax deal presents an opportunity to help children get ahead and create a brighter future for them.

Boosting Businesses and Competitiveness

Smith highlights the benefits the tax deal will bring to American families and businesses. It aims to provide greater tax relief, strengthen Main Street businesses, enhance competitiveness with China, and ultimately create more jobs.

Support for Research and Development

Under the new tax deal, businesses will be allowed to immediately deduct the cost of their U.S.-based research and development investments. This change, which accelerates deductions, provides businesses with more flexibility and encourages innovation.

Restoring 100% Expensing

Another notable provision of the deal is the restoration of 100% expensing for investments in machines, equipment, and vehicles. This move will incentivize businesses to invest in essential assets and stimulate economic growth.

Tackling Low-Income Housing Shortage

To address the shortage of low-income housing, the tax deal includes a provision to enhance the low-income housing tax credit. By increasing the supply of affordable housing, this measure aims to improve living conditions for those in need.

While the goal is to pass this tax deal by January 29, the beginning of tax filing season, the timeline remains uncertain due to other pressing matters. Congress must first address the imminent risk of a government shutdown.

The bipartisan tax deal offers a promising path forward, with its focus on supporting families, boosting businesses, and addressing critical socioeconomic issues. It presents an opportunity to make a meaningful impact on the lives of millions of Americans.