The House looked on track to pass the latest version of the $1.9 trillion coronavirus relief package later this week, as liberal Democrats swallowed their frustration with the Senate’s changes and prepared to approve the bill for a second time, the Wall Street Journal reported. Democrats, who hold a slim majority in the House, will need to stay largely united behind the legislation given the absence of any GOP support, providing an early test for party leaders. The House is expected to narrowly pass the bill today or tomorrow, sending it to the White House for President Biden’s signature. House Majority Leader Steny Hoyer (D., Md.) had initially said the House would take its first procedural vote on the bill Monday, but processing the bill’s Senate paperwork pushed the vote slightly later in the week, aides said. The legislation would provide $300 in weekly unemployment benefits through Sept. 6, send $1,400 direct payments to many Americans, direct $350 billion to state and local governments, fund vaccine distribution and expand the child tax credit, among other aid. Read more. (Subscription required.)
In related news, the coronavirus relief package that President Biden is expected to sign into law in the near future would cut taxes on average by about $3,000 in 2021 and would have the biggest impact on the after-tax incomes of low- and middle-income households, according to an analysis released yesterday by the Urban-Brookings Tax Policy Center (TPC), The Hill reported. The analysis focuses on four major tax provisions in the bill: the $1,400 direct payments and the expansions of the child tax credit, earned income tax credit, and child and dependent care tax credit. The Senate passed the bill on Saturday, and final passage in the House is expected this week. Those with incomes under $25,500 would on average see a 20.1 percent increase in their after-tax incomes for 2021, the biggest percent change of any income group, according to the analysis. Households in the middle of the income distribution, with income between roughly $51,000 and $91,000, would see a 5.5 percent increase in their after-tax income. Read more.
