Article Provided By Aaron Lorenzo
House Ways and Means Chairman Richard Neal is proposing to expand personal tax benefits like the Earned Income Tax Credit and Child Tax Credit alongside three-year renewals for a slew of expired business tax benefits known as extenders.
He’s pitching his plan to committee members on his side of the aisle in a closed-door meeting Tuesday morning, according to a House Democratic aide, who added that Ways and Means would mark up the plan next week if Neal (D-Mass.) gets buy-in Tuesday.
Neal is pressing for fast action to minimize chances that House Democrats get forced into accepting a Senate extenders plan as part of only one or two must-pass bills still expected this year, on federal spending levels or the raising debt limit.
“The window is closing,” said the aide, noting that Neal’s plan would put down a marker for Ways and Means Democrats about a month and a half before the August recess.
Under the proposal, the extenders would be revived retroactively for 2018 and continued through this year and next, beyond the 2020 elections. Neal previously offered a two-year renewal that other Democrats on the panel rejected over offset concerns, so he’s suggesting an estate tax boost to cover the cost for three years.
In addition, Neal is proposing to expand the Earned Income Tax Credit, Child Tax Credit and a dependent care tax credit for two years and suggesting a 1 percentage point increase in the corporate tax rate as an option to cover about $100 billion for the estimated cost of increasing those benefits over that timeframe.
Both pay-fors are likely to run into opposition in the Republican-controlled Senate.
To build support, Neal is proposing more relief for natural disasters that weren’t included in a recently approved package, perhaps for flood-related costs in the Northeast from 2012’s Hurricane Sandy and more current flooding in Nebraska.
In addition to including extenders that expired at the end of 2017, Neal’s plan would cover those set to sunset at the end of this year, like the production tax credit for wind energy, craft beverage tax relief and the New Markets Tax Credit for economic development, among others. It doesn’t sweep in suspended taxes connected to the Affordable Care Act like the so-called Cadillac tax on high-cost insurance.