Baldwin Calls on Senate to Pass Bipartisan Tax Cut for Wisconsin Families and Businesses

WASHINGTON, D.C. – Today, Senator Tammy Baldwin (D-WI) released the following statement in support of the bipartisan Tax Relief for American Families and Workers Act, House-passed legislation that would cut taxes for Wisconsin parents by expanding the Child Tax Credit, support Wisconsin manufacturers that invest in American innovation, and bolster Wisconsin’s Main Streets and small businesses.

“Wisconsin families and businesses work hard every day to make a living and contribute to our communities, and they deserve some breathing room. This bipartisan bill will cut taxes for Wisconsin families and Made in Wisconsin manufacturers, and I am proud to support it and am working to send it to the president’s desk,” said Senator Baldwin. “The Child Tax Credit will benefit hundreds of thousands of Wisconsin families and help ensure our children get the strong start they deserve. This bipartisan plan also supports our businesses that are investing in domestic innovation and cuts red tape for Wisconsin small businesses, easing their path to success and ensuring our Main Streets can continue to prosper. This bill is a win for Wisconsin’s families, economy, and future.”

Cut Taxes for Working Families with an Enhanced Child Tax Credit

• Expand access to child tax credit: Phased increase to the refundable portion of the child tax credit for 2023, 2024, and 2025. Approximately 224,000 children in Wisconsin would benefit from the child tax credit expansion in the first year, according to the Center on Budget and Policy Priorities.
• Eliminate penalty for larger families: Ensures the child tax credit phase-in is applied fairly to families with multiple children.
• One-year income lookback: Creates flexibility for taxpayers to use either current- or prior-year income to calculate the child tax credit in 2024 or 2025, similar to bipartisan action taken six times in the past 15 years.
• Inflation relief: Adjusts the tax credit for inflation starting in 2024.

Cut Taxes for Made in Wisconsin Manufacturers

• Research & Development (R&D): Encouraging American innovation and improving our competitiveness through R&D expensing so businesses of all sizes can immediately deduct the cost of their U.S.-based R&D investments over five years.
• Interest deductibility: Continues flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
• 100 percent expensing: Restores full and immediate expensing for investments in machines, equipment, and vehicles.
• Taiwan double tax relief: Strengthens America’s competitive position with China by removing the current double taxation that exists for businesses and workers with a footprint in both the United States and Taiwan.

Build Up Main Street and Rebuild Communities Struck by Disasters

• Expand small business expensing cap: Increases the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017.
• Cut red tape for small businesses: Adjusts the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation – the first update to the threshold since the 1950s.
• Help families get back on their feet with disaster tax relief covering recent hurricanes, flooding, wildfires, and the Ohio rail disaster.

Boosting Affordable Housing

• Increases supply of low-income housing: Enhancing the Low-Income Housing Tax Credit, a public-private partnership with a proven track record, with increased state allocations and a reduced tax-exempt bond financing requirement.

Eliminate Fraud and Waste by Ending the Employee Retention Tax Credit Program

• Saving taxpayer money: Saving over $70 billion in taxpayer dollars by accelerating the deadline for filing backdated claims to January 31, 2024 under the COVID-era employee retention tax credit – a program hit by major cost overruns and fraud.

An online version of this release is available here.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.