House panel advances $78 billion tax-break bill in strong bipartisan vote

U.S. lawmakers on Friday advanced a bill to enhance tax breaks for businesses and low-income families in a strong show of bipartisan support for the largely revenue-neutral measure, despite their deep divisions over federal spending levels.

The House of Representatives Ways and Means Committee approved the measure in a 40-3 vote, just three days after its Republican chairman announced the deal with his Democratic Senate counterpart.

The "Tax Relief for American Families and Workers Act of 2024" would increase the child tax credit and restore the full value of declining business tax deductions for investments in research and development and plant and equipment.

The changes would be effective through 2025, when Republican-passed tax cuts for individuals expire and Congress is expected to embark on a massive tax code revamp that will be hotly debated during this year's presidential election campaign.