WASHINGTON, D.C. – For the past four years, working families have been paying an inflation tax of over 20 percent thanks to the Washington Democrats’ trillions of dollars spending spree. If the 2017 Trump tax cuts are not extended, those same families will see another massive tax increase. In fact, the average American taxpayer will see a 22 percent increase in their tax burden. For a family of four making just over 80,000, that’s an additional $1,695 that will be taken out of their paycheck – the equivalent of roughly nine weeks’ worth of groceries.

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement on the need to protect working families from a tax hike:

“For the past four years, Americans have watched high prices eat away at their paychecks and financial well-being. A twenty-two percent tax increase would only compound that pain – particularly for lower-income Americans living paycheck to paycheck. Washington does not need to take more from workers, families, farmers, and small businesses. Congress needs to act swiftly to take this threat of a tax hike off the table and give the American people assurances that the relief they have been demanding has arrived.”

Key Facts:

• The 2017 Trump tax cuts lowered tax rates for all Americans.
• Americans earning under $100,000 received an average tax cut of 16 percent, while the share of taxes paid by the top 1 percent increased.
• The bottom 20 percent of earners – those with incomes up to $26,000 – saw their federal tax rate fall to its lowest level in 40 years.

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 family of four 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 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 next year.