The U.S. Capitol building and American flag. Photographer: Stefani Reynolds/Bloomberg
Potential Tax Alterations: Republicans’ Push for Business Tax Breaks
Republican factions advocate for the restoration of critical business tax breaks, emphasizing R&D expense deductions, bonus depreciation, and interest deductions on corporate debts. These proposed revisions aim to rekindle investment incentives and business growth.
Conversely, Democrats pivot toward an expanded child tax credit, championing measures to reduce child poverty. However, their aspirations face financial constraints and a lack of GOP backing, fostering potential compromises on narrower expansions for working parents.
A bipartisan agreement emerges on select issues, including disaster relief, tax credits for affordable housing builders, and rectifying technical glitches in previous legislation, setting a rare consensus amid political discord.
Exclusions from the Tax Agenda: Omitted Elements in the 2024 Tax Deal
Notably absent from the impending tax deliberations are extensions of individual tax provisions from the 2017 law and proposals for a mark-to-market tax regime targeting ultra-wealthy assets, shedding light on topics deferred for future discussions.
Senator Ron Wyden’s proposed billionaire income tax, focusing on taxing the annual built-in gains of high-income individuals, remains sidelined, leaving contentious measures awaiting potential future consideration.
