Press Releases

Tonight, Ways and Means Committee Ranking Member Richard E. Neal (D-MA) released the following statement after the House passed the bipartisan Tax Relief for American Families and Workers Act:

“Once again, the American people can count on the Democrats to get things done. Another legislative achievement to add to the mountain from the last Congress that made way for unbelievable economic growth. Our economy grew 3.1 percent last year, over 14 million jobs have been created under President Biden, and consumer confidence is surging. We may be in the minority now, but we are leading more legislation than the Republicans.

“Tonight is a win for our nation’s children, workers, and the hope Democrats have for our nation. Against all odds, we are advancing priorities to put money back in families’ pockets, spur affordable housing, and more. 400,000 children will be lifted out of poverty in the first year alone, with 16 million children receiving more assistance than they would’ve. We also fought for the largest investment in affordable rental housing resources since 2000, providing more than 200,000 affordable rental homes. 

“It’s a down payment in our vision for the American people—one of hope, prosperity, and opportunity.”

The legislation delivers vital tax relief to working families by:

• Increasing the maximum refundability of the credit, allowing low-income families to receive more of the credit than they were able to previously.
• Giving eligible families the option to use their earned income from the prior year to calculate their credit, benefiting taxpayers whose income may have fallen from one year to the next.
• Modifying the computation of the refundability to be on a per-child basis, meaning more low-income families with multiple children will qualify for a higher credit.
• Adjusting the credit for inflationstarting in 2025, keeping pace with the cost of living.

Other Key Provisions
This package will spur spending on domestic research and development by businesses, by allowing businesses to deduct those expenses immediately.  It will lower the cost of housing by enhancing the Low-Income Housing Tax Credit, which will help develop more than 200,000 affordable housing units.  It will provide tax relief to taxpayers who have been the victims of natural disasters.  And it will alleviate double-taxation on cross-border investment, allowing for a Tax Agreement with Taiwan, strengthening our economic partnership.

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