By: Ways & Means Committee Chairman Jason Smith (MO-08) and Rep. Randy Feenstra (IA-04)
Cedar Rapids Gazette
On Independence Day, as Americans were celebrating our nation’s 249th birthday with fireworks, barbecues, and road trips, President Donald Trump liberated hardworking taxpayers from government bloat and high taxes by signing into law The One, Big, Beautiful Bill. This historic law prevented what would have been the largest tax hike in American history and instead delivered the largest tax cut ever for families, farmers, workers, seniors, and small businesses.
Not a single Democrat supported it. With provisions to invest in domestic manufacturing, drive capital to our rural communities, and support Main Street, our economy will experience tremendous growth, inflation will remain in check, and businesses will have the certainty they need to grow and hire.
Republicans on the House Ways and Means Committee have been preparing for this moment for years. We held 12 field hearings in 12 states, including at the Iowa State Fair in Des Moines last year, to hear from parents, small business owners, farmers, and workers about the need to make the 2017 Trump tax cuts permanent and deliver additional economic relief where possible. We turned those hearings, testimonies, and conversations into real policy wins – culminating in what became The One, Big, Beautiful Bill.
For families, we increased the child tax credit to $2,200, indexed it to inflation, and made that policy permanent while raising the doubled standard deduction – which is claimed by 91 percent of all taxpayers – to nearly $16,000 for individual filers and almost $32,000 for married couples. We also expanded 529 savings accounts to put parents back in the driver’s seat when it comes to their children’s education and let families save more money tax-free for educational opportunities for their families. Moreover, 88 percent of seniors on Social Security will not pay a single penny in taxes on their Social Security benefits thanks to this Republican victory.
President Trump’s One, Big, Beautiful Bill also eliminated taxes on tips and overtime pay, ensuring that line workers working overtime to get the job done, delivery drivers bringing food on time, or restaurant employees taking on double shifts can keep more of the money they earn. We also included a tax deduction of up to $10,000 on car loan interest for American-made vehicles. This policy supports our world-renowned auto manufacturing industry and incredible auto workers while helping reduce the burden of car loan payments month after month. Those are real savings for Americans living paycheck to paycheck and families who can instead take those dollars and use them for gas, maintenance, and other unexpected expenses.
For farmers, we secured the largest investment in the farm economy in decades with $50 billion dedicated to farm and food security. This law makes higher levels of crop insurance more affordable, increases outdated reference prices for commodities like corn and soybeans, and fully funds foreign animal disease prevention, mitigation, and response efforts to combat illnesses like bird flu and African Swine Fever. We also increased the exemption for the death tax, saving two million family farms from being hit with this unfair double tax and making sure that family farms can be passed from one generation to the next – not China or any other foreign adversaries.
Additionally, The One, Big, Beautiful Bill makes permanent the 20 percent small business deduction which applies to 98 percent of farming operations, restores 100 percent bonus depreciation and immediate R&D expensing for manufacturers, and helps community banks offer agricultural loans to farmers looking to expand at lower rates. We protected Iowa’s biofuels industry from Chinese feedstocks, ensuring we remain competitive. We also extended Opportunity Zones to drive private capital into rural areas, which keeps Main Street businesses strong, supports farming communities, and fuels economic growth. Furthermore, we created new immediate expensing for the construction of American factories, manufacturing plants, and agricultural facilities – keeping families rooted in rural communities and expanding job opportunities for rural workers. Cutting red tape and making infrastructure investments more financially viable will spur economic activity in the heartland.
President Trump and Republicans in Congress pledged to cut taxes, cut spending, and cut the bureaucracy. With the signing of The One, Big, Beautiful Bill, we have delivered and honored the mandate we received. American families, farmers, workers, seniors, and small businesses will see the largest tax cut ever and the strongest economy ever because of this ironclad commitment. The Golden Age of America is officially here.