A bipartisan tax bill has passed a crucial Congressional hurdle, paving the way for a possible House vote.

• A substantial tax bill worth $78 billion, which offers substantial advantages to corporations, moved closer to becoming legally binding.
• The package offers the option to instantly expense research and development costs, as well as fully expensing machines, equipment, and vehicles.
• The bill increases the child tax credit by adjusting it for inflation and enables Americans without a tax bill to receive it as a refund.

On Friday, a $78 billion tax package that offers significant advantages to corporations advanced a crucial step towards becoming law, as the House Ways and Means Committee approved the bill with a vote of 40-3.

The proposed changes, such as allowing the immediate expensing of research and development costs, fully and immediately expensing machines, equipment, and vehicles, and increased flexibility for businesses through interest deductions, gained more support with the strong bipartisan showing in the House Ways and Means Committee.

The package offers tax credits to encourage the construction of affordable rental units, provides relief for wildfires and train derailments that occurred last year, and initiates the process of eliminating double taxation for businesses and workers with connections to the U.S. and Taiwan.

The 2017 Trump tax cuts included several provisions that have since expired. As a result, major business groups such as the Business Roundtable, Chamber of Commerce, and National Association of Manufacturers have advocated for their reinstatement to lawmakers.

The bipartisan agreement between Republican House Ways and Means Chair Jason Smith (Mo.) and Democratic Senate Finance Chair Ron Wyden (Ore.) resulted in the release of the package earlier this week.

The bill aims to gain more Democratic support by increasing the child tax credit through inflation adjustments and offering it as a refund to Americans without a tax bill, in addition to other modifications.

The White House also endorsed the legislation, in addition to the committee vote on Friday.

The White House press secretary, Karine Jean-Pierre, stated that the proposed legislation will lift hundreds of thousands of children out of poverty and construct hundreds of thousands of affordable rental housing units. This is a positive step forward, and we urge Congress to pass it.

The effectiveness of the White House's endorsement in winning over congressional Democrats is uncertain, as several influential Democrats have raised concerns about the package since its introduction earlier this week.

Rep. Earl Blumenauer, an Oregon Democrat, stated at Friday's Ways and Means vote that although it is better to pay the tax bill than to let everything expire, it does not mean it is right. He added, "That doesn't mean we can't do better."

Blumenauer stated that he would vote for the bill, but expressed his desire to expand the child tax credit.

The package would end a pandemic-era tax credit for businesses with employees affected by Covid-19 in order to pay for the measures on Jan. 31.

The bill has not been confirmed by House Speaker Mike Johnson for a vote on the House floor, but Smith and Wyden are hoping to pass it as soon as possible so that its provisions can be applied to 2023 federal tax filings, which are due April 15.