Senate rejects legislation that would expand child tax credit and restore business tax breaks

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A bill to expand the child tax credit and restore some tax breaks for businesses failed to advance in the Senate on Thursday. Republicans largely opposed the measure.

A bill to expand the child tax credit and restore some tax breaks for businesses failed to advance in the Senate on Thursday as Republicans largely opposed the measure, arguing they would be in position to get a better deal next year.Majority Leader Chuck Schumer, D-N.Y., dared Republicans to vote against the tax cut package before lawmakers headed home for the month. He said they would be voting against tax cuts for many low-income families and local businesses.

The changes in the child tax credit would lift as many as 500,000 out of poverty when the proposal was fully in effect, according to the Center on Budget and Policy Priorities, a liberal think tank.The bill would be paid for by speeding up the cutoff date by which companies could submit retroactive claims for employees they kept on the payrolls during the COVID-19 pandemic. The IRS has said a significant majority of retroactive claims are at a high risk of fraud.

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