Lawmakers announce bipartisan effort to enhance child tax credit, revive tax breaks for businesses

WASHINGTON (AP) — The chairmen of the top tax policy committees in Congress announced a bipartisan agreement Tuesday to enhance the child tax credit and revive a variety of tax breaks for businesses, a combination designed to attract support from lawmakers of both political parties.

The roughly $78 billion in tax cuts would be paid for by more quickly ending a tax break Congress approved during the COVID-19 pandemic that encouraged businesses to keep employees on their payroll.

The agreement was announced by Sen. Ron Wyden, the Democratic chairman of the Senate Finance Committee, and Rep. Jason Smith, the Republican chairman of the House Ways and Means Committee. The lawmakers have been negotiating for months on a tax package that would address an array of priorities before lawmakers turn their focus to election season.

Wyden said his goal is to gain approval for the measure in time for businesses and families to benefit during the upcoming filing season. The Internal Revenue Service will begin accepting and processing tax returns on Jan. 29, so lawmakers are looking to move the bill as quickly as possible.