House May Vote on Bipartisan Tax Bill Next Week

January 24, 2024
House leadership took a step toward consideration of a bipartisan tax package on the floor next week. Notably, text for the Tax Relief for American Families and Workers Act — which passed the Ways and Means Committee with near-unanimous support at the markup last Friday — was posted to the schedule late yesterday under items that “may be under consideration” next week as Speaker Mike Johnson (R-LA) continues his discussions with the GOP conference on how to proceed. If the speaker decides to move forward with a vote, the package is expected to come up under suspension of the rules, which requires a two-thirds majority voting in favor of expedited passage.
  • What to watch for. According to the latest intel from Capitol Hill, the speaker could be short on votes from members of the New York and New Jersey delegations who are pushing for changes to the $10k state and local tax (SALT) deduction cap. Meanwhile, the proposed tax changes are also running into resistance from some Senate Republicans, including Finance Committee Ranking Member Mike Crapo (R-ID) and Thom Tillis (R-NC), who have raised concerns about the Child Tax Credit (CTC) and Employee Retention Credit (ERC) policy changes. Nevertheless, Ways and Means Chair Jason Smith (R-MO) will continue his efforts with Finance Committee Chair Ron Wyden (D-OR) to navigate existing concerns within both parties and get the bill passed in both chambers, possibly as a rider to a sweeping March 2024 funding package.