WASHINGTON, DC – Today Congresswoman Nicole Malliotakis (NY-11) and Congresswoman Michelle Steel (CA-45), members of the House Committee on Ways & Means, introduced the Working Families Tax Cut Act, legislation that would give middle-class Americans a guaranteed deduction bonus for the next two years.
According to the Congressional Budget Office (CBO), the 2017 Tax Cuts and Jobs Act reduced federal tax rates for families at every income level and doubled the Guaranteed Deduction (also known as the “Standard Deduction”), providing tax cuts and easier tax filing. Malliotakis and Steel’s legislation aims to build on the success of Republican tax policies by providing a bonus guaranteed deduction of $3,900 for working families and $1,950 for single filers on 2024 and 2025 returns.
“The first two years of President Biden’s tax and spend agenda increased inflation and the cost of food, goods and services for middle-class families,” Malliotakis said. “Americans can no longer keep up with price increases, which is why we’ve introduced this legislation to increase the standard deduction and allow millions of families to keep more of their hard-earned money, including more than 350,000 households across Staten Island and Southern Brooklyn. Considering Congress just passed the largest spending cut in history, it’s appropriate to pass these savings directly on to taxpayers.”
“Our constituents are facing record inflation due to progressive policies and high taxes. The enhanced standard deduction created under the TCJA has cut taxes for hard-working Americans,” said Rep Steel. “For more than 305,000 households in my Southern California District who claim the Guaranteed Deduction—covering 82 percent of all tax filers—this Bonus will drive their federal tax bill lower and they will receive a significant increase in their 2024 and 2025 tax returns. This bonus will help ease the burden of inflation and allow families to spend their hard-earned wages the way they see fit.”
“Inflation has risen to the highest levels in a generation during the Biden Presidency, forcing millions of working Americans to make difficult financial choices as they struggle to make ends meet and provide for their families,” said Ways and Means Committee Chairman Jason Smith (MO-08). “Through hearings held around the country, the Ways and Means Committee has heard repeatedly from parents, workers, farmers, and small business owners about the urgent need for solutions to relieve financial pressures from the Biden economy. While Democrats advocate for raising taxes to give Washington more command and control, Republicans are committed to helping Americans keep more of their hard-earned money to spend, save, or invest as they need. Representatives Malliotakis and Steel’s bill, the Working Families Tax Cuts Act, cuts taxes on the middle-class workers and families through a guaranteed deduction bonus that will provide immediate help and finally some breathing room from the Washington price spike.”
Click here to read the bill.