:format(jpeg):focal(495x320:505x310)/cloudfront-us-east-1.images.arcpublishing.com/gfrmedia/MHQB465YTVCC5A42SIBQNFOADY.jpg "Refund hike for child tax credit, which applies in Puerto Rico, goes to full House session")
Washington DC. – Leadership in the US House of Representatives plans to bring up a vote this week on a bipartisan bill that Increases reimbursement for the Federal Credit for Dependent Children (CTC) for three taxable years, Which is valid in Puerto Rico starting in tax year 2021.
After being approved 41-3 in the Ways and Means Committee — the measure will go to a vote under suspension of rules — which requires bipartisan support and at least a two-thirds vote.
The law proposes, among other things, to increase the reimbursement of Child Tax Credit (CTC), That now rises to an annual maximum of $1,600 during the tax years 2023 through 2025. For the 2023 tax year, for which returns are filed this session, the bill proposes to increase the refund to $1,800.
15 million children could benefit from the measure – as per analysis Center for Budget and Priority Public Policies (CBPP)– The refund will increase to $1,900 for tax year 2024 and $2,000 in 2025.
The legislation is the product of negotiations between Republican Congressman Jason Smith (Missouri), chairman of the Ways and Means Committee, and Democrat Ron Wyden (Oregon), chairman of the Senate Finance Committee.
In the Senate, the minority leader on the Finance Committee, Republican Mike Crapo (Idaho), has indicated that the legislation “requires changes” to get his support, which would be key in the divided chamber 51 to 49 and which needs 60 votes to move forward. is
Republican Majority Leader of the House of Representatives, Steve Scalise (Louisiana) has placed the measure on the agenda this week in the House chamber.
“It will have a significant impact,” said Puerto Rican Democratic Congresswoman Nydia Velazquez (New York), adding that “Puerto Rico’s full inclusion in the CTC is an incredible achievement.” Velazquez also reiterated Democratic criticism that the tax benefits of all laws are tilted in favor of corporations.
Until 2021, the CTC refund is only applied to families with three or more children in Puerto Rico. Congress, with only Democratic votes, granted full access to Puerto Rico that year as part of the Economic Rescue Act (ARPA) adopted while seeking to mitigate the COVID-19 pandemic.
In Puerto Rico, refunds can be requested by filing a federal tax return and benefits are available to couples with an income of less than $200,000 or less than $400,000.
The legislation also seeks to increase the federal tax credit for low-income housing and give taxpayers the flexibility to use current or prior year income to calculate the CTC in 2024 and 2025. In addition, it encourages credit adjustment. Inflation starts in 2024.
The project also aims to expand innovation and competitiveness with favorable public policies for research and development, with the aim that corporations can deduct the cost of their investment in that sector immediately rather than over a five-year period.
That, in turn, would allow companies to deduct 100% of their costs on machines, equipment and vehicles and eliminate double taxation for corporations and workers with a presence in the United States and Taiwan.
The proposals, estimated to cost $78 billion, would be financed by eliminating job retention tax credits that were put in place during the pandemic and have been linked to fraud cases.
“This (measure) will help the United States compete and win against countries like China, encourage small businesses to grow and invest in American jobs and opportunities, and save taxpayer dollars by ending a Covid-era policy that has become an emblematic example of fraud. ” Congressman Smith announced.
During committee debate, Democrats tried to restore the year-long 2021 credit, which increased the annual maximum to $3,600. “If we Democrats had our way, we would have come out ahead. We know that when the middle class grows, the economy grows.said the Democratic minority leader on the commission, Richard Neal (Massachusetts).
:quality(85)/cloudfront-us-east-1.images.arcpublishing.com/infobae/VYDR5J6ECJCJXD52F7XYSKC6GQ "The United States stressed that Maduro has until April to challenge Maria Corina Machado’s presidential candidacy.")
:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/G3R7BWREKNHYROGPK4QJ2WY57E.jpg "In the United States today, March 25: Official Live Report by USGS | Mix")
