WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement to mark the seventh anniversary of President Trump signing the successful Tax Cuts and Jobs Act (TCJA) into law:

“In 2017, President Trump delivered the most significant tax relief legislation in a generation, unleashing America’s potential and creating the best economy of my lifetime. The success of the Trump tax cuts cannot be overstated, and working-class families, small businesses, and farmers reaped the benefits. These pro-growth policies spearheaded by Republicans resulted in the U.S. economy growing at a full percentage point higher than the previous 10-year average and surpassing economist predictions. This resulted in historically low levels of poverty and unemployment, both dropping to their lowest levels in 50 years.

“Failure to extend the expiring provisions of the Trump tax cuts is not an option, and for the past two years the Ways and Means Committee has been hard at work to extend and build on the success of President Trump’s economic policies. Congress must act swiftly to give American families and small businesses certainty that they will not be hit with a $4.6 trillion tax increase in 2025.”

Key Facts About the Impact of the Tax Cuts and Jobs Act:

• Wages increased 4.9 percent – the fastest two-year growth in real wages in 20 years.
• Workers in the lowest 10 percent of income saw 50 percent higher wage growth as compared to those in the highest 10 percent.
• Real median household income rose by $5,000 – a larger increase in just two years than in the prior eight years combined.
• Americans earning under $100,000 received an average tax cut of 16 percent.
• TCJA increased the share of taxes paid by the top 1 percent of households while reducing the burden paid by lower income workers.
• In the first two years after TCJA, GDP growth was a full percentage point higher than CBO’s pre-TCJA forecast and the previous 10-year average.
• In FY 2022, tax revenues reached a record-high of $4.9 trillion – $1.6 trillion higher than when TCJA was passed and $884 billion above the Congressional Budget Office’s post-TCJA projections for that fiscal year.

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 four 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 American family of four.
• 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 top tax rate if the Section 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, requiring further costly estate planning.