A tax relief package sponsored by U.S. Rep. Jason Smith, R-Mo. 8th District, is waiting to be considered by the U.S. Senate.

The bill would expand the size of the child tax credit for a three-year period and allow businesses to immediately deduct investments for research and development. Smith told Missourinet it would help families crushed by inflation.

“We’ve seen inflation rise by more than 17% in the last three years,” Smith said. “It removes the penalty for families with multiple children and it still maintains the work requirements to get the child tax credit. That’s something that will help a lot of families.”

Smith also said it would provide “a boost to American business.”

“Three important provisions expired, and this extends them,” he said. “(First), that is for research and development expensing, that will help support more than 21 million jobs in the country. (Second), you have the 100% expensing of equipment, machinery, this is big for small businesses and farmers.”

The third provision would allow businesses to deduct money spent on interest rates.

Smith’s bill would also eliminate double taxation for American businesses that have a presence in Taiwan, as a means of increasing competition against China.

It passed the U.S. House on a large bipartisan vote, 357 to 70.

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