Washington DC - The US House on Wednesday passed a $78-billion tax cut package which includes tax breaks for businesses as well as an expanded child tax credit.

The legislation, dubbed the Tax Relief for American Families and Workers Act of 2024, passed 357-70 with strong bipartisan support.

The bill passed out of the House Ways and Means Committee on January 19 in a 40-3 vote and got the backing of House Speaker Mike Johnson, a Louisiana Republican, on Wednesday.

The measure would restore full and immediate deductions for businesses to buy new equipment and machinery and engage in domestic research and development, which some Republicans argued would make the US more competitive against China.

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The bill also increases the child tax credit for low-income families, which is currently set at $2,000 per child – but is not entirely refundable.

Under the Tax Relief for American Families and Workers Act, the amount of refundable credit goes up to $1,800 for 2023 returns, $1,900 for 2024, and $2,000 for 2025.

The increases fall short of the child tax credit with monthly payments extended under President Joe Biden's American Rescue Plan in 2021. Before the program was allowed to end, returns were $3,600 annually for children under age six and $3,000 for children ages six to 17.

Not everyone was happy with the legislation, despite its bipartisan passage.

Some Republicans took issue with the exclusion of state and local tax (SALT) deduction limits. SALT deductions are considered beneficial primarily for wealthy residents in blue states, as those states typically have higher taxation rates.

Others did not think there should be a child tax credit at all.

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"What is a refundable tax credit? It’s welfare by a different name. We’re going to give cash payments, checks, to people who don’t even pay taxes," Rep. Thomas Massie of Kentucky said.

Some Democrats also criticized the bill, including Connecticut Rep. Rosa DeLauro, who said: "This bill provides billions of dollars in tax relief for the wealthy, pennies for the poor. Big corporations are richer than ever. There is no even split."

Representative Cori Bush of Missouri echoed similar sentiments: "I just voted NO on H.R. 7024," she wrote on X. "I cannot justify voting for a bill that provides giant tax breaks to the rich while decreasing the credits that helped lift over 3 million kids out of poverty. I will continue to fight for the full funding our communities deserve."

The bill now faces its next big hurdle in the US Senate.