Protecting Families From Tax Hikes Must Be An Immediate Priority of Next Congress

WASHINGTON, D.C. – The 2017 Trump tax cuts brought relief to every corner of America’s economy and to millions of families who today are struggling with the worst spike in prices in a generation. Having spent the past four years weathering an over 20 percent inflation tax, the last thing American families need is a bigger tax burden at the end of next year. 

However, if Congress fails to act, taxes will go up on American workers, families, farmers, and small businesses – including 40 million families who will see the Child Tax Credit reduced from $2,000 per child to $1,000.

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement on the need to protect access to the Child Tax Credit for 40 million families:

“Raising a family can be challenging enough without Washington pulling the rug out from under parents. But that’s exactly what will happen if the 2017 Trump tax cuts are allowed to expire next year. Forty million families will see their Child Tax Credit – a pro-family policy that was created, and later doubled, by Republicans to provide families relief and support – slashed in half. Additionally, the requirement that children have a Social Security Number in order to be eligible for the credit will also go away – eliminating a key protection against fraud. Congress must act as soon as possible to eliminate this threat of a higher tax burden and give families peace of mind.”

Key Facts:

• The 2017 Trump tax cuts doubled the Child Tax Credit (CTC) from $1,000 per child to $2,000.
• The new CTC policy also included a requirement that a child must have a valid Social Security Number in order to be eligible to receive the credit.

Key Policies from the Trump Tax Cuts Set to Expire if Congress Fails to Act

• Congress only has 149 legislative days next year to extend the doubled CTC before the Trump tax cuts expire.
• The average taxpayer would see a 22 percent tax hike if the Trump tax cuts expire.
• A family of 4 making $80,610, the median income in the United States, would see a $1,695 tax increase if the Trump tax cuts expire.
  • This is worth about 9 weeks of groceries to a typical family of 4 across the country.
• 40 million families would see their household’s Child Tax Credit cut in half.
• 90 percent of all taxpayers would see their Guaranteed Deduction slashed in half.
• 26 million small businesses would be hit with a 43.4 percent tax rate if the 199A Small Business Deduction expires.
• 7 million taxpayers would be impacted by the return of the Alternative Minimum Tax.
• 2 million family-owned farms would have their Death Tax Exemption slashed in half next year.

READ: Trump Tax Cuts Offer Relief For Working Families From Cost-of-Living Crisis