The House on Wednesday passed a measure that would eliminate the Earned Income Tax Credit and eliminate the child tax credit for the first time since 1983.
The measure also would slash the minimum wage to $15 per hour and increase the number of workers eligible for overtime pay.
The House voted 217-195.
The bill is expected to be sent to President Donald Trump and Senate Democrats for his signature.
“Today is an important day for America, and it is time for us to return to a bipartisan approach to our country’s economic challenges,” House Speaker Paul Ryan said in a statement.
The Congressional Budget Office estimates that the bill would reduce GDP by $1.4 trillion over the next decade.
The nonpartisan nonpartisan scorekeeper said the bill also would cause an estimated 13 million Americans to lose jobs.
The GOP-controlled Senate is expected next week to consider a bill to expand the Child Tax Credit to include the Earnings Tax Credit.
The legislation would eliminate most of the child credit.
Republicans are not expected to support the measure in its current form.
The proposal was the most expensive bill passed in the House.
It was estimated to cost the Treasury $1 trillion.
The tax credits are a form of tax relief for many working families.
They are typically given to those earning up to $100,000 a year, according to the Tax Policy Center, which advocates for reducing taxes on the wealthy.
The Senate proposal would also give families more money to spend on child care and college.