Fate of Latest Tax Proposal Is Far From Certain

Leaders of the House and Senate tax-writing committees unveiled a bipartisan framework this week that pairs business breaks with an expansion of the child tax credit, but a path toward passage remains rocky. Despite having the blessing of Senate Finance Chair Ron Wyden (D-Ore.) and Ways and Means Chair Jason Smith (R-Mo.), the panels' ranking members aren't yet sold. And while the framework has support from Senate Majority Leader Charles Schumer (D-N.Y.), it's not certain whether Speaker Mike Johnson (R-La.) will back the deal, too. The agreement—paid for by ending the troubled employee retention tax credit program after a public notice—evenly splits roughly $80 billion between the business tax benefits and an enhanced child credit. It also includes the extension of a tax deduction for disaster victims and expansion of a low-income housing tax break for developers. Reporter Chris Cioffi talks through what's in the deal and the political dynamics with Anna Taylor, deputy managing principal of Deloitte LLP's Tax Policy Group in Washington. Taylor spent nearly two decades working on the Hill, leaving her post as Schumer's tax and economic policy principal adviser to join the firm in 2023. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.