Democrats want to expand a tax credit that aids low-income families. Republicans hope to preserve a set of tax breaks that benefits businesses. And both parties hope to prevent a federal government shutdown.
Democrats plan to include that aid as part of their own omnibus proposal, which they intend to make public on Monday with or without GOP support, according to a party aide, who spoke on the condition of anonymity to describe their plans. Some GOP lawmakers, meanwhile, have called on Congress to postpone the debate into the new year, when Republicans will assume control of the House.
In those talks, Democrats have sought changes to the child tax credit, which provides yearly tax deductions, and often refunds, to low-income families with children. Party lawmakers have been chasing an expansion since last year, when a much larger, pandemic-era program expired, ending what were monthly advance payments to parents in need.
Speaking to reporters early Wednesday, Senate Majority Leader Charles E. Schumer described it as “something many of us are passionate about, and we would very much like to get it done.” Democrats, however, have made clear in recent days that an expansion is necessary to win their needed support on a chief GOP concern: tax breaks for businesses. For Republicans, policies enacted under the 2017 overhaul signed into law by President Donald Trump are the focus. Starting this year, for example, companies are required to spread, or amortize, their research and development deductions over five years.
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