The administration is proposing $1 trillion in tax credits for home heating, electricity, water and gas, as well as a tax break for small businesses.
It is calling for an end to the “giant loophole” that allows millions of people to get a tax deduction for owning stock in a company that has been in bankruptcy, while millions of other people who owe nothing will not.
But some economists question the measure’s success in increasing the number of jobs created.
“What they are proposing is a giveaway to the rich, and that’s a recipe for more wealth inequality,” said James Galbraith, a senior fellow at the Tax Policy Center, a nonpartisan think tank.
“It is not likely to have a positive impact on the wealth distribution of the country.”
The proposal comes amid a slowdown in the economy, as businesses are rethinking how they should manage capital, including a slowdown for small-business owners.
While the bill is intended to create jobs, it has the potential to hurt many Americans, particularly those working in low-wage jobs that rely heavily on tips and that could be cut from the plan.
The House and Senate have not reconciled the bill, so there is still a chance the final version could still fail.
House Minority Leader Nancy Pelosi, D-Calif., said Wednesday that the measure would help middle-class families, but “not the working class” who need jobs.
Ajit Pai, a member of the Trump transition team who is now the chairman of the Federal Communications Commission, was quoted as saying that the bill would provide a tax credit for companies that create jobs.
The company, however, would have to hire new workers and pay the workers in a way that is fair, Pai said.
Republicans have tried to move the measure forward despite complaints from Democrats that the legislation doesn’t provide enough relief for businesses.
Critics say the bill provides a tax breaks to corporations while leaving workers in the lurch.
There are several provisions in the bill that would help the rich get a leg up on the rest of us.
The House bill does not allow for a tax increase, which is designed to benefit corporations, and it does not offer the credit for job creation, which was designed to help small businesses, according to the Congressional Budget Office.
Instead, it provides a credit of up to $1,000 for homeowners, up to a $1 million credit for businesses, and up to an additional $500 for businesses that hire more than 20 people.
In the Senate, the bill includes a $2,500 credit for small employers, which has been the focus of some Democrats.
Sen. Bernie Sanders, I-Vt., and others have said the credit should be capped at $10,000.
The House version does include some of the provisions that the Senate would have approved, but they would be limited, and they would have limited impact on those who need assistance the most.
The credit would only apply to businesses that create 1 million jobs.