Larson, Ways and Means Committee Advance Build Back Better Act
Washington, D.C. - Today, Rep. John B. Larson (CT-01) and the House Ways and Means Committee advanced the Build Back Better Act, which builds on the successes of the American Rescue Plan to invest in the American people.
“With President Biden’s Build Back Better Act, Democrats have put forward the most consequential investment in the middle-class since the New Deal, including historic tax cuts for working Americans and families. I was proud to vote today to advance tax provisions that invest in the American people, address wealth inequality, support clean energy investments that will help combat climate change and create well-paying jobs.
“During the past four days of debate, we’ve heard the other side of the aisle call this legislation socialism, radical, and left-wing. It’s astonishing, because what this represents is a tale of two tax cuts. 83 percent of Republican tax cuts of 2017 went to the nation’s wealthiest 1 percent, while the middle- and working-class were supposed to wait on the benevolence of these wealthy individuals for money to trickle down to them. Republicans believe that corporate and wealthy overlords know what’s best for working Americans. Our legislation instead trusts in the middle- and working-class people of this nation to manage and receive a tax cut. When they receive these resources, they won’t be buying back stock options, they’ll be buying the basic essentials of life. They will buy food, educate their children, pay for health care, and make their mortgage and rent payments.
“Today, the third round of Child Tax Credit payments are being deposited in the bank accounts of millions of Americans. These tax cuts to working families stand in stark contrast to the trickle down approach of our Republican colleagues. The Build Back Better Act extends the expanded Child Tax Credit payments directly to impacted families from the American Rescue Plan cutting child poverty in half. The Act also makes the Earned Income Tax Credit expansion from the American Rescue Plan permanent, which helps approximately 17 million low-wage workers. It also keeps money in Americans’ pockets by lowering the cost of prescription drugs and extends the American Rescue Plan reductions in health insurance premiums, as well as providing paid family and medical leave. This is welcome, meaningful tax relief that goes directly to them.
“Additionally, the Build Back Better Act combats climate change by making the largest investment ever in the green economy, helping the United States to reach 80 percent clean energy generation by 2030 and spurring good-paying jobs. It includes the Clean Hydrogen Production and Investment Tax Credit Act of 2021, which I authored, to incentivize production of clean hydrogen, providing jobs in the First District and across the country. We cannot wait to address climate change, and this legislation is a significant step forward.”
The Build Back Better Act:
- Extends the historic American Rescue Plan expansion of the Child Tax Credit cutting child poverty in half by providing monthly cash payments for each child. The Connecticut 1st has 122,000 children who qualify for the advance CTC payments in August with an average household benefit of $395. 77,000 payments were made to CT-01 households already, totaling $30 million.
- Provides income assistance to approximately 17 million low-wage workers through permanent enhancements to the Earned Income Tax Credit, reducing poverty and improving lifelong health and economic outcomes for working families. Starting in 2022, more than 190,000 Connecticut households will receive an average additional $193.
- Contains the single largest investment ever in the green economy, helping the United States to reach 80 percent clean energy generation by 2030 and spurring good-paying jobs in every Congressional District.
- Includes clean hydrogen production credit legislation authored by Larson to incentivize production of clean hydrogen, providing jobs in the First District, which is a hydrogen hub.
- Lowers prescription drug costs and extends the American Rescue Plan provision reducing health insurance premiums by an average of 40 percent. In Connecticut, premiums would be reduced by $1,000 a month for an average family of four.
- Permanently reinstates the casualty loss deduction so that the homeowners struggling with crumbling foundations can deduct their losses retroactively to 2018 and a new tax credit for distressed neighborhoods that can be used for repairs of homes with crumbling foundations.
- Allows state and local governments to deploy billions in financing for investments in roads, bridges, airports, water infrastructure, and schools through tax exempt bonds. In Connecticut alone, nearly 163,000 jobs will be saved or created, 243 miles of road repaired and fifty-five bridges restored.
- Creates nearly 1.4 million new affordable rental units nationally and 12,700 units across Connecticut over the next ten years through the Low Income Housing Tax Credit enhancements.
- Provide up to $8,000 in tax cuts for families with child care or long-term care needs through the caregiver tax credit and dependent care credit.
- Requires wealthy corporations and high-income individuals pay their fair share of tax at the same time providing a tax cut for small business.