Speaking with reporters in Springfield Friday, Neal, a Democrat from Massachusetts’ First House District, spoke highly of the tax bill that cleared the House 357 to 70 earlier in the week.
Among the items in the $78 billion "Tax Relief for American Families and Workers Act" is an expansion of the child tax credit. Neal, the ranking member of the Ways and Means Committee, said tens of thousands of families across his district will benefit from the legislation.
"It's going to give them more cash in their pockets and I think that that's the big deal,” said Neal. "And at a time when I think there's been a disproportionate amount of influence on tax cuts for people at the top, this is a tax cut for people in the middle and at the bottom of the economic spectrum."
According to Neal's office, about 35,000 children in the district would benefit from the credit at $2,000 per child.
The tax bill now heads to the Senate. While Democratic Majority Leader Chuck Schumer of New York supports the bill, it faces some hurdles from Senate Republicans.
"There are some disparaging comments about it in the Senate — one senator said that they didn't want to help Joe Biden get reelected, which I thought, the better answer was, we should be helping 16 million children have better lives," Neal said.
During the press event, Neal also highlighted the latest jobs report from the U.S. Bureau of Labor Statistics finding the economy added 353,000 jobs in January.
He noted the country has regained all jobs lost during the COVID-19 pandemic.
“And, plus, the Department of Labor reports this week, that 9 million jobs are available right now in America that go unanswered every day," the congressman said. "I think that I take great satisfaction, because much of that legislation, as many of you know, came from the Ways and Means Committee, which we did with the former president and then we have done with Joe Biden during these three years."
Neal said the positive jobs report will benefit President Biden’s bid for re-election in November. With unemployment at 3.7 percent, the positive jobs report comes even as a majority of Americans perceive the country’s economy to be in rough shape, according to recent polling.
“We all acknowledge it's not going to be easy, but I also think that as time moves on, people will begin to recognize the difference between perception and reality,” said Neal.
Neal noted Federal Reserve chair Jerome Powell’s recent signaling the Fed would not cut interest rates in March, but has predicted rates to drop in 2024.
“He certainly left the door open for one in April, and certainly one by May. He's projecting, I think, privately, that there could be five interest rate cuts this year. So, I'm wondering what he would think today when he sees that jobs report,” Neal stated.
