Business

House panel advances tax deal with resounding bipartisan vote on January 19, 2024 at 8:21 pm Business News | The Hill

Published

1 year ago

January 19, 2024

A deal to reduce taxes for businesses and increase the child tax credit (CTC) made it out of the House Ways and Means Committee with broad bipartisan support Friday.

The tax deal advanced with 40 votes in favor and only 3 opposed.

A last-minute substitution amendment to the $79 billion tax bill tweaked it slightly, bringing its total savings to $399 million from $262 million over the 10-year budget window, according to the Joint Committee on Taxation (JCT).

The cost of the proposal — $33 billion for the CTC expansion plus another $33 billion for business breaks — are offset almost exactly by a $77 billion revenue bump achieved by canceling the employee retention tax credit (ERC).

During the Friday markup of the bill, Democrats expressed frustration that it didn’t include a larger allotment for the expanded child tax credit, which raised millions of children out of poverty when it was boosted and made fully refundable in the wake of the pandemic.

Amendments to further boost the CTC by making it fully refundable and sending it out in monthly payments were proposed by Democrats but shot down by the committee.

“The child tax credit, or CTC policy, as written in this bill does not reach families who need it the most,” Rep. Suzan Delbene (D-Wash.), who proposed one of the amendments, said during the hearing. “Someone making the federal minimum wage and working full time, [making] approximately $15,000 a year, would not earn enough to receive the full credit.”

Still, key Democrats including ranking member Richard Neal (D-Mass.) and Bill Pascrell (D-N.J.) voted in favor of the plan. Only Reps. Lloyd Doggett (D-Texas), Linda Sanchez (D-Calif.) and Brian Higgins (D-N.Y.) voted against it.

While the bill is revenue-neutral and provides $33 billion in deductions for research costs and other business expenses, Republicans have boasted much larger benefits will accrue to companies as a result of the deal.

“This legislation locks in over $600 billion in proven pro-growth, pro-America tax policies with key provisions that support over 21 million jobs,” Ways and Means chair Jason Smith (R-Mo.) said in a statement released along with the announcement of the deal earlier this week.

Some analysts say this is why the nominal parity in the legislation between the business credits and CTC expansion is not really accurate.

Joe Hughes, a federal policy expert with the Institute on Taxation and Economic Policy, told The Hill the $600 billion figure comes from the possibility that Republicans will work to extend them beyond 2025, when they’re currently set to expire.

“This highlights one of the complications CTC advocates have faced while negotiating on a dollar-for-dollar agreement. Two of the business provisions have to do with the timing tax payments, so when they are only extended temporarily, the revenue score understates their true cost by assuming the government will make up some of the revenue loss in the out-years. Of course, proponents of these provisions never intend for them to truly expire,” he wrote in an analysis.

The White House said Friday it was pleased on the progress of the legislation — and the fact that the deal was paid for — urging Congress to pass the measure.

“We are pleased that the House Ways and Means Committee has advanced a bipartisan tax bill that will increase the Child Tax Credit for millions of families,” a White House spokesperson told The Hill in a statement.

“While the President will continue to fight to restore the full expanded Child Tax Credit that helped cut child poverty in half, the bipartisan tax bill is a welcome step forward, and Congress should pass it,” the spokesperson added.

The deal faces an uncertain future in the GOP-controlled House, where Speaker Mike Johnson (R-La.) has yet to weigh in on the measure. Johnson is also facing pressure from conservative hardliners over government funding and border security ahead of a potential shutdown on March 1, which could complicate the bill’s path out of the House.

Senate Majority Leader Chuck Schumer (D-N.Y.) has endorsed the tax proposal, which would need 60 votes to pass the upper chamber.

Business, Domestic Taxes A deal to reduce taxes for businesses and increase the child tax credit (CTC) made it out of the House Ways and Means Committee with broad bipartisan support Friday. The tax deal advanced with 40 votes in favor and only 3 opposed. A last-minute substitution amendment to the $79 billion tax bill tweaked it slightly,…

Business

When TikTok and CapCut Vanished from America

Published

2 weeks ago

January 19, 2025

Bolanle Media Staff

In a shocking turn of events, TikTok and CapCut, two of America’s most popular social media and video editing apps, vanished from U.S. app stores and became inaccessible to users on Saturday evening, January 18, 2025. This unprecedented digital blackout affected approximately 170 million American users, leaving them stunned and searching for alternatives.

The Sudden Shutdown

As the clock struck 10:50 PM Eastern Time on Saturday, both TikTok and CapCut disappeared from Apple and Google app stores. Users attempting to access the apps were greeted with a stark message: “Sorry, TikTok isn’t available now. A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now”.

The ban wasn’t limited to just TikTok and CapCut. Other ByteDance-owned apps, including Lemon8, Hypic, and Gauth, also became unavailable to U.S. users. This sweeping action effectively cut off access to a suite of popular digital tools that millions had come to rely on for entertainment, content creation, and even business purposes.

The Legal Battle

The shutdown came after a tumultuous legal battle that culminated in a Supreme Court decision upholding a federal law requiring ByteDance, the Chinese parent company of TikTok and CapCut, to either sell its U.S. operations or face a ban. The legislation, passed in April 2024, cited national security concerns related to data privacy and potential foreign influence.

Impact on Users and Creators

The sudden disappearance of TikTok and CapCut has left content creators and everyday users in a state of digital limbo. Many relied on these platforms not just for entertainment, but as essential tools for their livelihoods and creative expression. The ban has disrupted a thriving ecosystem of digital content creation, leaving millions to scramble for alternative platforms and editing tools.

Political Implications and Future Uncertainties

As the dust settles, all eyes are on the incoming administration. President-elect Donald Trump, set to take office on January 20, has hinted at a potential 90-day extension for ByteDance to sell TikTok. This development has injected a new layer of uncertainty into an already complex situation.

What’s Next?

While the apps remain inaccessible, ByteDance and TikTok officials continue to work towards a resolution. TikTok’s message to users ends on a hopeful note, stating, “We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned”.

As America grapples with this digital void, questions about data privacy, national security, and the future of social media regulation loom large. The TikTok and CapCut ban marks a significant moment in the ongoing debate over the influence of foreign-owned technology companies in the United States, with far-reaching implications for users, creators, and the tech industry as a whole.

Bolanle Media covers a wide range of topics, including film, technology, and culture. Our team creates easy-to-understand articles and news pieces that keep readers informed about the latest trends and events. If you’re looking for press coverage or want to share your story with a wider audience, we’d love to hear from you! Contact us today to discuss how we can help bring your news to life.

Business

TikTok Ban Drives 216% Rise in U.S. Users Learning Chinese on Duolingo

Published

3 weeks ago

January 16, 2025

Bolanle Media Staff

Duolingo has reported a remarkable 216% increase in U.S. users learning Mandarin Chinese, coinciding with the impending ban on TikTok, set to take effect on January 19, 2025. This surge is attributed to many TikTok users migrating to a new Chinese social media platform called RedNote (also known as Xiaohongshu), which defaults to Mandarin as its primary language. As TikTok users seek alternatives amidst concerns over data privacy and app availability, they are turning to RedNote, prompting a cultural exchange that has driven interest in learning Chinese.

The spike in Mandarin learners began around mid-January, aligning with the growing popularity of RedNote among former TikTok users. Duolingo’s marketing team has actively engaged with this trend on social media, humorously acknowledging the phenomenon with posts like “Learning Mandarin out of spite? You’re not alone”.

Additionally, Duolingo has seen a 36% increase in downloads in the U.S., reflecting heightened consumer demand for language learning resources as users adapt to the new social media landscape.

The transition from TikTok to RedNote has not been without challenges, as some users have encountered technical issues during registration and account suspensions.

Nevertheless, this shift underscores a significant demand for social networking experiences that resonate with American users while navigating the complexities of Chinese platforms.

Business

TikTok’s Final Countdown: The Sunday Shutdown

Published

3 weeks ago

January 16, 2025

Bolanle Media Staff

As the clock ticks down to January 19, 2025, TikTok users in the United States are bracing for a significant disruption. The app, which boasts approximately 170 million users in the country, faces a potential ban that could render it non-functional by this Sunday. Here’s what you need to know about the impending ban and its implications.

Key Details of the Ban

The anticipated ban comes amid ongoing national security concerns regarding TikTok’s Chinese ownership. Government officials have raised alarms about the possibility of sensitive user data being accessed by Chinese authorities. As a result, the app is expected to be removed from digital app stores, effectively cutting off new downloads and updates.

What Will Happen?

Removal from App Stores: On January 19, TikTok will likely be taken down from platforms like the Apple App Store and Google Play Store.
Existing Users Affected: Current users may find that their app becomes non-functional, losing access to new content creation and updates.
Data Preservation Challenges: Users may face difficulties in preserving their data and content as the deadline approaches.

Recommendations for Users

In light of the impending ban, TikTok users should take proactive steps to safeguard their content and data:

Download Personal Data: Users can access their TikTok settings to download their data before it’s too late.
Export Saved Videos: Save any cherished videos or content that you wish to keep.
Backup Content: Consider backing up your videos on alternative platforms.
Explore Alternatives: As TikTok faces its potential shutdown, consider migrating to other platforms such as:

Instagram Reels
YouTube Shorts
Lemon8
Triller

Potential Scenarios

While the ban is set for this Sunday, there are several scenarios that could unfold in the coming days:

Last-Minute Legal Intervention: There remains a possibility of a legal challenge that could delay or halt the ban.
Temporary Injunction: Courts may issue a temporary injunction allowing TikTok to operate while legal proceedings continue.
Complete Shutdown: If no intervention occurs, users will face a complete shutdown of the platform in the U.S. market.

Emotional Impact on Users

The potential ban is not just a technical disruption; it carries significant emotional weight for many users. Content creators who have built their brands on TikTok may experience economic repercussions as they lose a primary platform for engagement. Additionally, the shift could lead to broader changes in the social media landscape as users seek new avenues for expression and connection.

Conclusion

As we approach this critical deadline, TikTok users should remain vigilant and prepared for possible changes. Whether through legal maneuvers or a complete shutdown, the future of TikTok in the United States hangs in the balance. Stay tuned for real-time updates as we navigate this evolving situation together.