“Some of the greatest benefits of TCJA is the effect that it has had on the growth of jobs, enhancing productivity, and increasing the paychecks for our employees,” shared John John Frangakis, owner of a small business in Pennsylvania. As the economy slows towards a Biden recession John added, “there’s no worse thing to do than raise taxes.”
Permanent middle-class and small business tax cuts are key to House Republicans’ Commitment to America and restoring an economy that’s strong.
To examine how Americans and small businesses will benefit by making permanent the lower tax rates originally enacted as part of the Republican Tax Cuts and Jobs Act (TCJA), Ways and Means Republicans, led by Tax Subcommittee Republican Leader Rep. Mike Kelly (R-PA), held a virtual meeting titled “Make TCJA Permanent to Lock in Low Taxes for Families and Small Business.”
- The Tax Cuts and Jobs Act (TCJA) worked to help all Americans by lifting millions out of poverty, shrinking income inequality, and growing paychecks.
- With raging inflation, shrinking paychecks, and shrinking economic growth, Americans are suffering in President Biden’s cruel economy.
- Twenty-three provisions of TCJA are set to expire after 2025 unless Congress takes action.
- Ways and Means Republicans have introduced legislation to secure Americans’ economic future, better jobs, and more growth.
- Republican Leader on the Ways and Means Health Subcommittee Rep. Vern Buchanan (R-FL) introduced the TCJA Permanency Act to ensure the tax cuts as part of TCJA don’t expire.
CLICK HERE to watch a replay of the event.
READ MORE ABOUT TCJA: Five Years Later: Republicans Delivered Historic, Pro-American Tax Reform
“American businesses and U.S. workers know the crippling effects of what we’ve seen under President Biden and other Democratic Administrations—higher taxes and lower paychecks that don’t keep up with inflation,” Rep. Kelly said, kicking off the meeting. “Don’t put a heavier burden on our taxpayers that keeps them from reaching their personal greatest achievement.”
“Republicans delivered the most comprehensive overhaul in three decades,” Republican Leader on the Health Subcommittee Rep. Vern Buchanan (R-FL) said. “It helped our country achieve historic economic growth. We delivered significant tax relief for low and middle class families and small businesses and businesses at all levels.”
“You better believe that other countries would love to capitalize on these provisions expiring,” Republican Leader on the Trade Subcommittee Rep. Adrian Smith (R-NE) said. “We need to make sure that we are leading the way around the world.”
“Businesses need pro-growth policies, and they need stability. As we get closer and closer to some of these businesses expiring, it will be a snap back to much higher tax rates and other harmful policies,” Rep. Lloyd Smucker said (R-PA).
President Biden’s threat to eliminate all of TCJA presents real harm to families. Here’s what would happen:
- Millions of families would see direct tax increases:
o Their child tax credit would be cut in half.
o Their standard deduction would be cut in half, raising their taxes and creating filing headaches as they are forced to itemize deductions and deal with a shoebox full of receipts on top of the refrigerator.
o The AMT would snap back to hit millions of households.
- Initial estimates from the nonpartisan Tax Foundation indicate the looming tax hikes in 2026:
- A single mother of two earning $52,000 would face a $1,500 tax hike
- For a married couple with two children and $85,000 in income, the additional tax bill would be over $1,700 per year.
- Millions of low- and middle-income households would be stuck paying the Affordable Care Act individual mandate tax.
- Utility bills would go up in all 50 states as a direct result of unwinding TCJAtax cuts.
- Small employers would face a tax increase due to the repeal of the 20 percent deduction for small business income.
- American companies would be stuck with the highest the highest corporate income tax rate in the developed world.
- Taxes would rise in every state and every congressional district.
- The Death Tax would ensnare more farms and other family businesses.