Senator Peters Releases Statement After Republicans Block Legislation to Cut Taxes for Hardworking Families
WASHINGTON, DC – U.S. Senator Gary Peters (MI) released the following statement after Senate Republicans blocked the Tax Relief for American Families and Workers Act, which would have provided tax cuts to hardworking Michigan families by expanding the Child Tax Credit (CTC) and the Low-Income Housing Tax Credit (LIHTC). The legislation also would have provided additional tax relief to businesses for research and development and small business expensing, as well as Americans impacted by major natural disasters:
“Today, I voted for commonsense legislation that would have delivered a much-needed tax break to hardworking families in Michigan and across the country, and would have helped address Michigan’s affordable housing shortage. It would also have provided financial relief to small businesses, and expanded disaster relief for Americans whose lives have been upended by natural disasters. I am deeply disappointed that despite these clear benefits that would have created jobs, spurred economic growth, and bolstered our nation’s global competitiveness, Republicans voted overwhelmingly to block this bill from becoming law.”
The Tax Relief for American Families and Workers Act would expand the Child Tax Credit (CTC) and the Low-Income Housing Tax Credit (LIHTC), which would boost affordable housing tax credits, and significantly increase the supply of affordable housing units nationwide. The bill would also restore several tax provisions to support businesses, including tax cuts for small businesses that invest in research and development (R&D), expand tax breaks for those impacted by natural disasters, and create a framework with Taiwan to further strengthen economic ties between our nations. The legislation passed the House of Representatives in January 2024 with overwhelming bipartisan support in a 357-70 vote.
Peters has repeatedly fought to deliver tax breaks to hardworking families. Peters helped lead the effort to expand the CTC through the American Rescue Plan, which specifically provides critical support to low- and middle-income working parents. According to the Center on Budget and Policy, the expansion of the CTC included in the Tax Relief for American Families and Workers Act would benefit more than 80 percent of American children in its first year, which translates to about 16 million children nationwide, including about 474,000 kids in Michigan. Peters has also fought to strengthen the LIHTC, which is the nation’s primary source of financing for the construction and preservation of affordable housing. According to estimates, the LIHTC provision in this legislation would support the production of more than 200,000 affordable homes nationwide. According to Michigan State Housing Development Authority (MSHDA), Michigan is lacking about 141,000 housing units to meet the current demand. Peters has additionally supported restoring tax cuts for businesses investing in R&D that boost innovation and growth.
Peters recently introduced legislation – called the Revitalizing Downtowns and Main Streets Act – to make better use of vacant or underutilized commercial properties by creating a federal tax credit to help convert unused buildings into affordable housing. As a member of the Senate Community Development Finance Caucus (CDFC), Peters has also been a champion for the Community Development Financial Institutions (CDFI) Fund which helps spur investment and economic growth in low-income urban and rural communities across the country. He also supports the New Market Tax Credit (NMTC) program which supports investments in low-income communities and businesses and generates $8 of private investment for every $1 invested by the federal government.
###
