U.S. Sens. Michael Bennet and Mitt Romney, R-Utah, have proposed a compromise of policy changes to include in a “tax extenders” deal. Congress is considering which provisions to maintain, expand or curtail as the year-end expiration date approaches for many.
“Congress is nearing another deadline without a clear plan to deal with dozens of fundamental responsibilities that the American people expect us to address,” the two men said in a statement.
A main component of the proposal is child tax credits, including the creation of another tax credit to families for up to $2,500 per child age six or below. All households with young children would receive at least $1,500, and lower-income households would be eligible for the full amount. The existing child tax credit of up to $2,000 per child ages six to 17 would also provide slightly more generous benefits on an income-based scale.
Bennet and Romney also argue for the elimination of the medical device excise tax, originally signed into law in December 2015. However, Congress imposed a moratorium on the tax’s collection between Jan. 1, 2016 and Dec. 31, 2019. The 2.3% tax on devices such as pacemakers, joint replacements and surgical tools would apply mostly to importers and manufacturers.
To pay for the forgone revenue, the senators suggest passing a handful of other bills to raise money or cap losses, including limiting a tax deduction for conservation easements, cracking down on anti-competitive charges for brand-name drugs, and applying the tobacco tax to electronic cigarettes.