House panel advances tax deal with resounding bipartisan vote

A deal to reduce taxes for businesses and increase the child tax credit (CTC) made it out of the House Ways and Means Committee with broad bipartisan support Friday.

The tax deal advanced with 40 votes in favor and only three opposed.

A last-minute substitution amendment to the $79 billion tax bill tweaked it slightly, bringing its total savings to $399 million from $262 million over the 10-year budget window, according to the Joint Committee on Taxation (JCT).

The cost of the proposal — $33 billion for the CTC expansion plus another $33 billion for business breaks — are offset almost exactly by a $77 billion revenue bump achieved by canceling the employee retention tax credit (ERC).