WASHINGTON, D.C. – Any unnecessary delay in extending the 2017 Trump tax cuts heightens the risk that all Americans will see their taxes go up – including for the 91 percent of Americans who utilize the guaranteed deduction to lower and simplify their tax bill. Under the Trump tax cuts, Republicans doubled this tax deduction – making that option more attractive for more Americans to utilize in lowering the amount they owe to the IRS and making tax filing faster and less complicated.

If Congress fails to act swiftly, American families will see the guaranteed deduction on their tax return slashed from over $30,000 to $16,000, leaving virtually all families, regardless of income level, forking over more of their earnings to Uncle Sam.

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement on the need to ensure a higher guaranteed deduction continues to be available:

“Filing one’s taxes can be a daunting, time-consuming, and costly task. Republicans doubled the guaranteed deduction in the 2017 Trump tax cuts to expand not only the tax relief going to working families, but to also simplify the process of paying taxes. Should Congress fail to act, 91 percent of taxpayers will see their guaranteed deduction slashed in half. This will raise the tax and tax filing burden on millions of working Americans. Any failure to address the upcoming expiration of the Trump tax cuts will impose higher taxes on families who have struggled enough over the past four years under the Biden Administration.”

Key Facts:

• The 2017 Trump tax cuts doubled the guaranteed deduction (also known as the “Standard Deduction”). 
• Today, 9 out of 10 American households use the guaranteed deduction, which provides tax relief and fewer tax filing headaches.

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

• Congress only has 149 legislative days next year to act 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.
• 91 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