(NewsNation) — Two top lawmakers Tuesday announced they reached a deal on a tax framework that includes expanding the child tax credit among other provisions.
Rep. Jason Smith, R-MO, chair of the House Ways and Means Committee, and Democratic Sen. Ron Wyden of Oregon, who heads the Senate Finance Committee, announced what they called a “bipartisan, bicameral” framework in a news release.
“Fifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead,” Wyden said in a statement.
An analysis by the Center on Budget and Policy Priorities was even more optimistic, saying 16 million children would benefit.
“In the first year, the expansion would lift as many as 400,000 children above the poverty line. 3 million more children would be made less poor as their incomes rise closer to the poverty line,” the analysis said.
Altogether, the deal is about $80 billion, NewsNation partner The Hill wrote.
Enhancing the child tax credit had been a move Democrats wanted, though the framework unveiled by Wyden and Smith has items like business tax breaks that Republicans were aiming for.
“American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China and creates jobs,” Smith said.
The Hill reports the proposed expansion would increase the maximum credit parents get per child to $2,000 by 2025. Currently, that maximum credit is $1,600.
At the same time, it also restores business deductions for research and development costs, interest payments and capital investments.
“By incentivizing R&D, this plan is also going to promote innovation and help sharpen our economic competitiveness with China and the rest of the world,” Wyden said.
Wyden added he wants this framework to be passed by the upcoming tax filing season, which officially begins Jan. 29.
“I’m going to pull out all the stops to get that done,” Wyden said.
This story is developing. Refresh for updates.