Wisconsin Governor Tony Evers vetoed nearly $800 million in income tax cuts and bills aimed at increasing tax credits for married couples and retirees, citing concerns about fiscal responsibility and sustainability. Republicans argued that the measures were intended to make the state more attractive for families and retirees, but Evers expressed worries about draining the state's reserves and risking the need to return federal stimulus money.
The US House passed a $79 billion tax cut package with bipartisan support, enhancing the child tax credit for lower-income families and boosting tax breaks for businesses. The bill faces uncertainty in the Senate, but represents a rare breakthrough for the House. Republicans seek to address the $10,000 cap on property tax deductions, while Democrats focus on boosting the child tax credit. The bill also enhances a tax credit for rental housing and provides relief for victims of natural disasters and the East Palestine, Ohio, train derailment.
The House has passed a bipartisan tax package that includes a temporary expansion of the child tax credit for three years, along with restoring business tax credits. The bill, if quickly passed by the Senate, would allow more low-income families to access the credit and receive a larger credit, benefiting roughly 16 million children in low-income families in the first year. While some Democrats criticized the bill for not providing enough support for low-income families, Senate Democrats generally support the legislation, and it could come up for a vote quickly.
The chief tax writers in Congress have reached a deal to temporarily expand the Child Tax Credit and undo restrictions on popular business tax breaks, with the roughly $80 billion package also including subsidies for affordable housing and disaster assistance. The plan would be paid for by cracking down on the troubled Employee Retention Credit and could potentially be attached to must-pass budget legislation or passed as a standalone measure. The agreement represents a significant victory for Democrats and would cost roughly $35 billion over three years, largely benefiting lower-income individuals.
