Kansas’ four representatives in U.S. House vote in favor of $79 billion tax legislation

The four members of the Kansas delegation to the U.S. House voted for a bill providing billions of dollars for a collection of federal business tax breaks and expansion of the child tax credit beneficial to low-income families.

Bipartisan sentiment of U.S. Reps. Jake LaTurner, Ron Estes and Tracey Mann, all Republicans, and U.S. Rep. Sharice Davids, a Democrat, reflected the overall 357-70 vote in favor of the $79 billion package. The measure required a two-thirds majority to rush it to the U.S. Senate for consideration.

Davids, who represents the 3rd District in the Kansas City area, said the legislation would cut taxes for families and small businesses in Kansas through escalation of child tax credits, affordable housing provisions and tax credits for research and development.

“Today’s bipartisan tax package delivers a middle-class tax cut to hardworking families and small businesses who have struggled with higher prices in recent years,” Davids said. “Ultimately, this is exactly how Congress should be operating — both parties coming together to find solutions that benefit the American people.”

Davids said changes to the child tax credit would expand direct payments over the next three years to 136,000 children in Kansas.

The House bill included low-income housing tax credit provisions that would build upon public-private partnerships with a proven track record of benefit to rural, suburban and urban Kansans, said LaTurner, who serves the 2nd District in the eastern part of the state.

LaTurner said the package would offer tax relief tied to Republican-backed reforms dating back to 2017 and the administration of President Donald Trump. The bill would offer tax benefits to victims enduring natural disasters and end double taxation for U.S. companies doing business in Taiwan.

“I promised hardworking families that I would fight to put more money back in their wallets, create good-paying jobs and get our economy back on track. That’s why I supported the Tax Relief for American Families and Workers Act,” LaTurner said.

Cost of the legislation would be offset by pulling the plug on backdated claims for a federal employee retention tax credit devised during the COVID-19 pandemic that was riddled with fraudulent claims. Congressional estimates put savings to taxpayers of ending the retention credit at more than $70 billion.

Estes, who represents the congressional district centered on Wichita, said he was excited with inclusion of an expansion of the federal research and development tax credit designed to encourage investments allowing companies to create jobs and better compete globally.

It would allow businesses to immediately deduct the cost of U.S.-backed research and development investments rather than do so over a five-year period.

“The bill includes a provision that I’ve been advocating for – immediate R&D expensing,” the Republican said. “Without this, we’ve seen the growth rate of R&D spending slow. And, since three-quarters of R&D spending is on wages and salaries, R&D amortization is primarily a jobs issue. Countless Kansas small businesses express their grave concern about this expired provision, and I’m glad we’re taking a positive step to restore immediate R&D expensing.”