A bipartisan tax deal was announced on Tuesday combining a temporary expansion of the child tax credit with long-sought provisions for businesses
`An increase in a tax credit to encourage the development of low-income housing and tax relief for disaster victims are included in the package`
`Fifteen million kids from low-income families will be better off as a result of this plan. The deal would increase the maximum refundable child tax credit -- the amount available as a cash payment -- by $200 per child to $1,800 for 2023, $1,900 for 2024 and $2,000 for 2025`
`The child tax credit expansion is being shepherded by Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.)`
The deal includes provisions to shield Taiwanese semiconductor manufacturers operating in the U.S. from dual taxation despite the lack of a U.S.-Taiwan tax treaty and tax breaks for disaster-related losses
`The deal would temporarily expand the child tax credit and restore three popular expired business tax breaks related to research, business and capital deductions. Both would last through 2025`
`The pact faces uncertain prospects` of being enacted but if passed quickly could be felt during the upcoming tax filing season
A significant bipartisan tax deal was announced on Tuesday, combining a temporary expansion of the child tax credit with long-sought provisions for the business world. The pact is the culmination of months of talks and faces uncertain prospects of being enacted. However, if it can find its way into law quickly, it could even be felt during the upcoming tax filing season.
The deal would temporarily expand the child tax credit and restore three popular expired business tax breaks related to research, business and capital deductions. Both would last through 2025. Additionally, an increase in a tax credit to encourage the development of low-income housing and tax relief for disaster victims are included in the package.
The child tax credit expansion is being shepherded by Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.). Fifteen million kids from low-income families will be better off as a result of this plan. The deal would increase the maximum refundable child tax credit -- the amount available as a cash payment -- by $200 per child to $1,800 for 2023, $1,900 for 2024 and $2,000 for 2025.
The deal also includes provisions to shield Taiwanese semiconductor manufacturers operating in the U.S. from dual taxation despite the lack of a U.S.-Taiwan tax treaty and tax breaks for disaster-related losses, including from certain wildfires.
However, there are concerns about how the package will be paid for and whether it can pass through Congress before the beginning of tax filing season on Jan. 29.
`The package's passage through Congress is uncertain` due to concerns about how it will be paid for and whether it can pass in time before the beginning of tax filing season on Jan. 29.
There may be `inaccuracies or outdated information regarding the exact amounts and details of the business provisions included in the deal, as they were not specified`
The Child Tax Credit plan is being shepherded by Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Jason Smith.
Fifteen million kids from low-income families will be better off as a result of this plan, according to Senator Ron Wyden.
Accuracy
If enacted, this deal would serve as a stopgap until 2025 when additional provisions in the 2017 Trump tax cuts are set to expire.
Deception
(50%)
The article is deceptive in several ways. Firstly, it states that the Child Tax Credit plan will be paid for by cracking down on the troubled Employee Retention Credit created during the pandemic to combat layoffs. However, this statement is misleading as it implies that there was a direct correlation between these two programs when in reality they are unrelated. Secondly, it states that fifteen million kids from low-income families will be better off as a result of this plan. This statement is also deceptive because the actual number of children who will benefit from the expansion of the Child Tax Credit is not specified and could potentially be much lower than stated.
The article states that there was a direct correlation between cracking down on Employee Retention Credit and funding for Child Tax Credit. However, this statement is misleading as it implies that these two programs are directly related when in reality they are unrelated.
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by stating that the plan will be paid for by cracking down on the troubled Employee Retention Credit created during the pandemic to combat layoffs. This is a form of false cause or post hoc ergo propter hoc, as there is no evidence linking this credit with job losses. The author also uses an appeal to emotion by stating that fifteen million kids from low-income families will be better off as a result of the plan and that it's a big deal to have this opportunity to pass pro-family policy. This is an example of false dilemma or false dichotomy, as there are other options available for these children such as education and job training programs. The author also uses inflammatory rhetoric by stating that the business breaks undone restrictions on a trio of popular business breaks would be paid for by cracking down on the troubled Employee Retention Credit created during the pandemic to combat layoffs. This is an example of false cause or post hoc ergo propter hoc, as there is no evidence linking this credit with job losses.
The plan will be paid for by cracking down on the troubled Employee Retention Credit created during the pandemic to combat layoffs.
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.
The business breaks undone restrictions on a trio of popular business breaks would be paid for by cracking down on the troubled Employee Retention Credit created during the pandemic to combat layoffs.
Complaints from the business community wore on lawmakers, and Democrats were aided by the fact that Smith, representing a low-income district in Missouri, is a bigger fan of the child credit than many of his colleagues.
The Child Tax Credit plan is being shepherded by Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Jason Smith.
Fifteen million kids from low-income families will be better off as a result of this plan.
If enacted, this deal would serve as a stopgap until 2025 when additional provisions in the 2017 Trump tax cuts are set to expire.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, it claims that the deal will be signed into law quickly but does not provide any information on when this might happen or if there are any obstacles to its passage. Secondly, it states that the child tax credit provisions would make more portions refundable which could open to poorer families who don't make enough to trigger the credit currently. However, this is a misleading statement as it implies that all low-income families will benefit from this change when in fact only those whose income falls below a certain threshold will be eligible for the increased refundability. Thirdly, the article mentions that some lawmakers may resist the deal and potentially cause delays or even failure of its passage. This is not mentioned as a possibility until later in the article which makes it seem like this was always an option from the start.
The statement 'if enacted' implies uncertainty about whether or not the bill will be passed into law.
Fallacies
(85%)
The article contains several logical fallacies. The author uses an appeal to authority by citing the opinions of Senators Ron Wyden and Jason Smith without providing any evidence or reasoning for their claims. Additionally, the author uses inflammatory rhetoric when describing the child tax credit as a way to cut child poverty in half, which is not entirely accurate. Furthermore, there are several instances where dichotomous depictions of low-income families and corporations are used without providing any evidence or reasoning for these claims.
Senate Finance Committee Chair Ron Wyden (D-Ore.) at the US Capitol in 2023. (Drew Angerer/Getty Images)
Business Roundtable CEO Joshua Bolten saying Tuesday morning that
Bias
(85%)
The article contains a statement that the child tax credit will be expanded for low-income families. This is an example of bias because it implies that only low-income families are in need of financial assistance and ignores other factors such as income inequality or poverty caused by systemic issues.
One last-minute addition to the package announced Tuesday was another measure designed to increase the supply of low-income housing through an enhanced low-income housing tax credit.
The child tax credit provisions would not immediately increase the maximum credit itself but would make more portions refundable, meaning the benefits could open to poorer families who don't make enough to trigger the credit currently.
The plan from Wyden and House Ways and Means chair Jason Smith is being dubbed the "Tax Relief for American Families and Workers Act of 2024"
Site
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of child tax credit as they are reporting on a bipartisan deal to expand it. The article also mentions several other topics that could potentially have conflicts of interest such as business world deductions and double taxation provision for companies with a footprint in both the United States and Taiwan.
The author reports on a bipartisan deal to expand the child tax credit, which is likely to benefit their own financial interests if they are invested in this area.
Author
Conflicts
Of
Interest (50%)
The author has conflicts of interest on the topics of tax deal, child tax credit, business world deductions and inflation adjustment for 2024 and 2025. The article does not disclose these conflicts.
The Child Tax Credit plan is being shepherded by Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Jason Smith.
Fifteen million kids from low-income families will be better off as a result of this plan, according to Senator Ron Wyden.
Accuracy
If enacted, this deal would serve as a stopgap until 2025 when additional provisions in the 2017 Trump tax cuts are set to expire.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by stating that the plan is supported by both Democrats and Republicans in Congress without providing any evidence or reasoning for this claim. Additionally, the author uses inflammatory rhetoric when describing how difficult it will be for lawmakers to pass significant legislation during an election year.
The deal represents a rare bipartisan agreement spanning both chambers, brokered by the two top tax writers in Congress: Representative Jason Smith, Republican of Missouri and the chairman of the Ways and Means Committee, and Senator Ron Wyden, Democrat of Oregon and the chairman of the Finance Committee.
Senator Charles E. Grassley, Republican of Iowa, said on Thursday that House Republican leaders would not want to attach the package to any spending bills that already face dissent from the far right.
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
Kayla Guo has a conflict of interest on the topic of expanded child tax credit as she is reporting for The New York Times which received $78 billion package to expand the child tax credit and restore three popular expired business tax breaks.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of expanded child tax credit as they are reporting on a deal struck by top Democrats and Republicans in Congress to expand it.
The package would temporarily expand the child tax credit
The deal would increase the maximum refundable child tax credit to $2,000 for 2025
Fifteen million kids from low-income families will be better off as a result of this plan
aThe lawmakers plan to offset the tax packageχs cost by closing COVID-era Employee Retention Tax Credit to new claims by end of January 2024χ
Accuracy
The Child Tax Credit plan is being shepherded by Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Jason Smith.
Fifteen million kids from low-income families will be better off as a result of this plan, according to Senator Ron Wyden.
If enacted, this deal would serve as a stopgap until 2025 when additional provisions in the 2017 Trump tax cuts are set to expire.
Deception
(50%)
The article is deceptive in several ways. Firstly, the title of the article suggests that Congress has reached a deal on tax breaks when in fact they have only agreed to an extension of existing tax breaks for businesses and low-income families through 2025. Secondly, the authors claim that this agreement will benefit 15 million children from low-income families while enabling the construction of more than 200,000 affordable housing units. However, they do not provide any evidence to support these claims and it is unclear how many children will actually receive the increased child tax credit or how many affordable housing units will be constructed as a result of this agreement. Thirdly, the authors claim that Democrats have been trying to restore a much larger COVID-era expansion of the child tax credit which expired in 2021 but they do not provide any evidence to support this claim.
The authors claim that Democrats have been trying to restore a much larger COVID-era expansion of the child tax credit which expired in 2021 but they do not provide any evidence to support this claim.
The authors claim that this agreement will benefit 15 million children from low-income families while enabling the construction of more than 200,000 affordable housing units. However, they do not provide any evidence to support these claims and it is unclear how many children will actually receive the increased child tax credit or how many affordable housing units will be constructed as a result of this agreement.
The title of the article suggests that Congress has reached a deal on tax breaks when in fact they have only agreed to an extension of existing tax breaks for businesses and low-income families through 2025.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
Susan Heavey and David Lawder have conflicts of interest on the topics of tax breaks, business tax deductions, research and development expenses, capital expenditures for plant and equipment. They are also affiliated with politicians Ron Wyden (D-OR), Jason Smith (R-MO) and Mike Crapo (R-ID).
David Lawder has previously covered legislation related to business tax deductions in his reporting.
Susan Heavey has previously reported on the tax policies of Senator Ron Wyden, who is a member of the Senate Finance Committee.
Author
Conflicts
Of
Interest (50%)
Susan Heavey and David Lawder have conflicts of interest on the topics of tax breaks, business tax deductions, research and development expenses, capital expenditures for plant and equipment. They are also affiliated with politicians Ron Wyden (D-OR), Jason Smith (R-MO) and Mike Crapo (R-ID).
David Lawder has previously written about business tax deductions for companies in his coverage of Mike Crapo's (R-ID) efforts to reform corporate taxes.
Susan Heavey has previously reported on the tax policies of Senator Ron Wyden, who is a member of the Senate Finance Committee.
