WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) joined Fox Business host Stuart Varney on Tuesday to highlight the Tax Relief for American Families and Workers Act.
The legislation, which passed the House Ways and Means Committee last week by a vote of 40-3, makes a historic investment in American workers, families, farmers, and small businesses by extending and building on a series of key tax cuts from the 2017 GOP tax reforms.
During the interview, Chairman Smith highlighted the need to pass this legislation given the positive impact it would have on workers and small businesses, saying, “We’re working on some pro-growth, pro-worker, pro-American tax policies that will support families and main street businesses. It will also help sharpen our competitive edge with China and boost more innovation. Three very important provisions of Trump’s tax cuts expired, just in the last couple of years. Research and Development Expensing, which is extremely important. This provision would add $70 billion in investment. The Interest Deductibility provision is extremely important where small businesses are being affected with huge interest rates. This will create 867,000 new jobs just by this provision, and it will bring in $58 billion in take home wages.”
The Tax Relief for American Families and Workers Act…
Expands Innovation and Competitiveness with Pro-Growth Economic Policies
- Research & Development (R&D) expensing: allowbusinesses of all sizes to immediately deduct the cost of their U.S.-based R&D investments instead of over five years – encouraging American innovation and improving our competitive position versus China and the rest of the world.
- Interest deductibility: continued flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
- 100 percent expensing: restore full and immediate expensing for investments in machines, equipment, and vehicles.
- Taiwan double tax relief: strengthen America’s competitive position with China by removing the current double taxation that exists for businesses and workers with a footprint in both the United States and Taiwan.
Builds Up Main Street and Rebuilds Communities Struck by Disasters
- Expand small business expensing cap: increase the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017.
- Cut red tape for small business: adjust the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation – the first update to the threshold since the 1950s.
- Help families get back on their feet: provide disaster tax relief covering recent hurricanes, flooding, wildfires, and the Ohio rail disaster.
Supports Working Families with an Enhanced Child Tax Credit
- Expand access to child tax credit: phased increase to the refundable portion of the child tax credit for 2023, 2024, and 2025.
- Eliminate penalty for larger families: ensure the child tax credit phase-in applies fairly to families with multiple children.
- One-year income lookback: flexibility for taxpayers to use either current- or prior-year income to calculate the child tax credit in 2024 or 2025, similar to bipartisan action taken six times in the past 15 years.
- Inflation relief: adjust the tax credit for inflation starting in 2024.
Eliminates Fraud and Waste by Ending the Employee Retention Tax Credit Program
- Saving over $75 billion in taxpayer dollars: accelerate the deadline for filing backdated claims to January 31, 2024, under the COVID-era employee retention tax credit – a program hit by major cost overruns and fraud.
Supports Communities with an Updated Low-Income Housing Tax Credit
- Increases supply of low-income housing: enhance the Low-Income Housing Tax Credit, a public-private partnership with a proven track record, with increased state allocations and a reduced tax-exempt bond financing requirement.