- Makes the 2017 Trump tax cuts permanent – protecting the average taxpayer from a 22 percent tax hike.
- Saves the average American family $1,700 – the equivalent of 9 weeks of groceries.
- Increasing real annual after-tax take-home pay for a median-income household with two children by roughly $7,600 to $10,900.
- Raising annual real wages by $4,000 to $7,200 per worker.
- Delivers on President Trump’s priorities of no tax on tips, overtime pay, and car loan interest, and provides additional tax relief for seniors.
- Locks in and boosts the doubled Child Tax Credit for more than 40 million families and provides additional tax relief for American families.
- Preserves and increases the doubled guaranteed deduction for 91 percent of all taxpayers.
- Expands 529 education savings accounts to empower American families and students to choose the education that best fits their needs, whether it is K-12 materials or obtaining a postsecondary trades credential.
- Supports working families by expanding access to child care and making permanent the paid leave tax credit.
- Puts American families in control of their health care by expanding health savings accounts and cementing into law a Trump Administration policy that offers more choice and flexibility for health coverage options.
- Starts building financial security for America’s children at birth with the creation of Trump investment accounts.
Delivering Tax Relief
Working Families Tax Cuts Key Provisions
for seniors
- Makes permanent the 20% 199A small business deduction – creating over 1 million new Main Street small business jobs and generating $750 billion in economic growth at American small businesses.
- Renews 100% immediate expensing, incentive for research & development in the U.S., and deduction for interest expenses, and supports the expansion of new production factories and growing operations in America by allowing 100% expensing for new factories, improvements to existing factories, and other production facilities.
- Stops the Democrats’ attack on the gig economy by repealing their 1099-K gig worker rule that would have required Venmo, PayPal, and gig transactions over $600 be reported to IRS.
- Reduces paperwork burden for small businesses and workers by increasing the 1099-MISC threshold to $2,000.
- Makes permanent and increases the doubled Death Tax Exemption for over 2 million family-owned farms.
- Renews Opportunity Zone program to spur over $100 billion in new investment over the coming decade with enhancements to target rural distressed communities.
- Estimated to boost real gross domestic product (GDP) by 4.6 to 4.9 percent in the next four year and by 2.4 to 2.7 percent through the 10-year budget window.
- $284 billion of new economic growth from American manufacturers.
- Secures 7.2 million jobs for American workers.
- Holds woke, elite universities that operate more like major corporations and other tax-exempt entities accountable, ensuring they can no longer abuse generous benefits provided through the tax code.
- Increases levies on the largest elite university endowments.
- Increases tax on massive non-profits that resemble hedge funds and pay their employees huge salaries.
- Ends $500 billion in Biden-era tax breaks and special interest giveaways to the wealthy, big corporations, and China.
- Prevents taxpayer benefits from going to illegal immigrants by requiring a Social Security number for individuals claiming tax credits and deductions, ending illegal immigrant eligibility for Obamacare premium tax credits and Medicare, and applying new fees on remittance payments from illegal immigrants to outside the U.S.
What They Are Saying
For the 96% of manufacturers that are organized as pass-through businesses, this bill is more than policy—it’s a path to growth. It means the ability to buy equipment, hire workers, increase pay and expand operations with greater certainty and confidence. Not only is the Ways and Means Committee preserving the benefits of the Tax Cuts and Jobs Act for these businesses—this bill makes the law even more competitive, including by increasing and making permanent the job-creating pass-through deduction.
Jay Timmons, President and CEO, NAMThe House Republicans’ tax plan to make the Tax Cuts and Jobs Act permanent and cut taxes on Main Street is a major win for American small businesses. House Republicans listened to Job Creators Network and small businesses and have called for expanding the expiring 20% small business tax deduction that has been a lifeline for Main Street over the past few years.
Alfredo Ortiz, CEO, JCNChairman Smith’s tax package is a decisive step forward in ensuring a stable, pro-growth tax environment that will empower retailers to continue investing in their businesses, employees and communities. By extending key provisions of the Tax Cuts and Jobs Act — including full expensing, immediate research and development expensing, and enhanced interest deductibility — this legislation demonstrates a clear commitment to supporting innovation, job creation and economic expansion.
David French, Executive Vice President of Government Relations, NRFThe Tax Cuts and Jobs Act (TCJA) was an economic game changer that fueled a wave of investment in innovation and workforce development…Doubling down on what has already proven to work is the right strategy, and we’re excited to see the House take the first step that will lead to legislation on the President’s desk.
Courtney Titus Brooks, Vice President, Tax, RILAThe Ways and Means Committee unveiled tax reform legislation that will position the United States for years of economic growth and prosperity. Our member companies have seen firsthand how a competitive tax environment drives investment, stimulates economic expansion, and supports higher wages for American workers.
Dan Combs, Executive Director, RATE CoalitionThe One Big, Beautiful Bill rolled out by Chairman Smith today offers a powerful mix of tax relief and incentives that will supercharge American entrepreneurship, investment, innovation, and opportunity. It will bolster small business competitiveness and growth, and boost economic development in every corner of the country.
Karen Kerrigan, President & CEO, SBE CouncilA supersized Child Tax Credit will ease the financial burdens on families raising children and those hoping to welcome new babies into the world. A more generous tax deduction on business income will give small businesses the certainty to plan for the future and reinvest in their businesses to grow.
Patrice Onwuka, Director of the Center for Economic Opportunity, Independent Women's ForumWe believe it is an important step toward providing the long term tax framework that our companies need to succeed. We are glad that the bill creates permanence for TCJA’s international measures and restores several expired provisions, including R&D and the interest limitation deduction.
Anne Gordon, Vice President for International Tax Policy, NFTCThis blueprint includes the top tax priorities restaurant operators need to grow and continue to be the cornerstones of this country’s local economies…Tax policies can be make-or-break for small business, but that’s especially true for restaurant operators, who run their businesses on thin 3-5% pre-tax margins.
Sean Kennedy, Executive Vice President Public Policy, National Restaurant AssociationThe permanent extension and maintenance of sound tax policy will provide the certainty needed for effective financial planning, enabling families and small businesses to make informed decisions, invest with confidence and build a secure financial future.
Kevin Mayeux, CEO, NAIFAThe committee’s markup represents a pivotal moment in the effort to protect and enhance tax reform, which delivered transformative economic benefits for American businesses, workers and families.
Kristen Silverberg, President & COO, Business RoundtableSince President Donald Trump introduced the concept last year, ‘No Tax On Tips’ has earned widespread and bipartisan support because it gives tax relief and fairness for millions of hard working Americans. Dashers, the independent contractors who deliver on the DoorDash platform, highly value the independence and flexibility that dashing provides…‘No Tax On Tips’ would allow them to take home even more pay.
John Horton and Katherine Rodriguez, Head of North America Public Policy and Interim Head of Federal Affairs, DoorDashNearly all franchise owners are structured as pass-through businesses, and without this legislation they would face a significant tax increase at the end of the year…By providing greater financial certainty, this enhanced deduction would empower small business owners to grow, support their workforce, and contribute to sustained economic growth and prosperity.
IFAThis is an encouraging first step that recognizes the critical role of family-owned businesses to the economy. We urge Congress to quickly pass this legislation and to keep family-owned businesses front and center as they continue through the reconciliation process.
Francis Creighton, President and CEO, WSWAThis provision—the 45B FICA Tip Tax Credit—is a critical step toward tax fairness for our industry. It directly supports small business owners and the service professionals who are the economic backbone of communities across the country.
Myra Y. Reddy, PBAWe are particularly encouraged that the legislation increases and makes the death tax exemption permanent, recognizing the unique challenges family-owned businesses face in planning for generational continuity. Additionally, the legislation ensures strong tax relief for working families by making individual tax cuts permanent and expanding both the standard deduction and child tax credit.
NAWWe applaud the House Ways and Means Committee for their hard work in crafting a tax plan that supports American energy leadership. As this important process continues in Congress, we look forward to working with policymakers on a final, pro-growth tax package that enhances the pro-investment policies, accelerates innovation and advances global competitiveness.
Mike Sommers, President and CEO, APIThis draft language preserves or strengthens a raft of provisions vital to housing affordability, including making the current lower income tax brackets permanent.
Shannon McGahn, Executive Vice President and Chief Advocacy Officer, NARThis bill is a critical step toward fulfilling the promises conservatives made to voters in the last election. There is no time to waste in advancing these pro-growth reforms through the Ways and Means Committee and bringing them to the House floor as part of President Trump’s ‘One Big, Beautiful Bill.
David McIntosh, President, Club for GrowthThe Ways and Means Committee’s section of the reconciliation bill delivers for taxpayers by making provisions of the Tax Cuts and Jobs Act permanent, eliminating redundant programs, and enacting policies that will promote economic growth.
Tom Schatz, President, CAGWThis bill represents meaningful progress, providing much-needed certainty to hardworking taxpayers and job creators, addressing Biden-era corporate welfare for progressive special interests, and empowering patients with more personal options. Since last year, AFP’s activists have been vocal about preventing the largest tax hike in history. It is encouraging to see that Congress is listening and is moving to permanently enshrine the Trump tax cuts into the tax code.
Brent Gardner, Chief Government Affairs Officer, AFPThis bill will raise take-home pay for workers, create jobs, boost manufacturing and grow the American economy to outcompete China and Europe. Advancing this tax package is a crucial step towards delivering the economic agenda conservatives campaigned on and makes it clear to voters that the Republican party is the party of lower taxes, less government and greater economic opportunity.
Grover Norquist, President, ATRKudos to @RepJasonSmith and @WaysandMeansGOP for taking a big step toward tax reform. NTU hopes to play a key role in getting a fantastic bill to @realDonaldTrump’s desk before the 4th of July!
National Taxpayers Union (NTU)We at March for Life are grateful for the pro-life, pro-family reconciliation bill text released today…We are also happy to see the House standing with every woman and for every child in the language coming out of Chairman Jason Smith’s Ways and Means Committee that takes concrete steps to support families by increasing the Employer-Provided Childcare Credit, making Paid Family and Medical Leave permanent, and making the Adoption Tax Credit refundable.
March for LifeThank you Chairman @RepJasonSmith and @WaysandMeansGOP for working creatively to support moms, babies, and families in the areas where they need it the most.
SBA Pro-Life AmericaThank you to the @WaysandMeansGOP + @RepJasonSmith for proposing to raise the Child Tax Credit to $2.5K and make it permanent. These provisions will strengthen a longstanding family that benefits all American families. Now is the time to pass legislation to strengthen the CTC.
Concerned Women for America LACAmericans United for Life stands for the flourishing of families. We are encouraged to see the House Ways and Means Committee increase their response to the needs of American families, especially support for young and growing families through the child tax credit and the foster and adoption tax credit.
John Mize, CEO, Americans United for LifeSupport for families doesn’t end at birth. Conservatives must lead the charge in making it more affordable and sustainable for Americans to raise children. At a time when birth rates are declining and the economic burden of parenthood is rising, this Child Tax Credit update sends a powerful message: We value children. We value parents. And we value the American family.
ACLJ ActionThe Ways & Means committee rightfully goes after the problem of illegal immigration by levying a tax on remittances to foreign countries. Importantly this markup also restricts tax benefits for illegal aliens. This further strengthens the reconciliation legislation, which already included historic and badly needed funds to secure our borders and restore law and order to our immigration system.
Michael Hough, Director of Federal Relations, NumbersUSAThis week, the U.S. House Ways and Means Committee will advance tax reform legislation to make permanent and broaden the Tax Cuts and Jobs Act (TCJA). Failure to do so will mean an annual tax increase of $1700 per year, a 22% tax hike overnight. This bill is a big step forward for taxpayers, and it should enjoy the support of every House Republican.
Center for Free EconomyACTR strongly supports the termination of the IRS Direct File project, which is unnecessary, costly and unauthorized by Congress…The take-up rate of IRS Direct File by taxpayers has been abysmal, even as the private sector provides millions of tax returns each year at no cost to taxpayers.
American Coalition for Taxpayer Rights (ACTR)If passed, this legislation would enable the majority of Small Businesses to continue benefitting from lower individual tax rates and, crucially increase the amount of Qualified Business Income (QBI) deductible for these entrepreneurs under Section 199A up to 23 percent…Together, these measures would ensure small businesses do not bear a disproportionate share of the tax burden compared to their larger counterparts, providing long-term certainty for Main Street entrepreneurs.
Todd McCracken, President and CEO, NSBAThis vital bill strengthens and makes several key tax provisions permanent that support the roofing industry. These provisions are particularly critical for main street, family-owned and pass-through entities that represent 95% of all U.S. businesses and employ the majority of private-sector workers.
National Roofing Contractors Association (NRCA)This legislation will spur economic growth and job creation, incentivize capital investment, and ensure that AED members, who supply and maintain the equipment needed to build, feed and fuel America, remain competitive for years to come.
Brian P. McGuire, President & CEO, Associated Equipment Distributors (AED)This legislation restores much-needed tax certainty, encourages reinvestment and reinforces a competitive business environment where companies of all sizes can grow and succeed. It is a blueprint for sustained growth and job creation, reflecting merit, competition and the freedom to build a business.
Kristen Swearingen, Vice President of Government Affairs, ABCThe wireless industry strongly supports the House Ways and Means Committee’s budget reconciliation bill’s proposed tax provisions that will fuel innovation, investment and global competitiveness…These measures will help ensure the U.S. again leads in wireless and are essential for strengthening our country’s infrastructure, creating jobs and securing the nation’s economic future.
Kelly Cole, Senior Vice President, Government Affairs, CTIAOn behalf of the app-based industry and its 7.3 million independent workers, we thank Chairman Smith and the Ways & Means Committee for including app-based earners in the proposed 'No Tax on Tips' initiative. This legislation champions American workers by ensuring they retain more of their income while maintaining transparency and accountability.
Kristin Sharp, CEO, Flex AssociationThe Housing Credit provisions in the reconciliation legislation released by the Ways and Means Committee today are a welcome step toward the creation of hundreds of thousands of additional affordable homes in the U.S. At a time when housing costs remain high, and safe, affordable homes remain out of reach in too many communities across the country, we applaud the Committee’s action toward resolving a crisis that continues to affect millions of Americans.
Emily Cadik, CEO, Affordable Housing Tax Credit Coalition (AHTCC)With the expiration of the Tax Cuts and Jobs Act right around the corner, Congress needs to act now to protect family farmers and ranchers from a massive tax hike. We strongly urge all members of the House Ways and Means Committee to support Chairman Jason Smith’s tax reconciliation package that reduces the Death Tax and expands pro-small business tax deductions like section 199A, section 179, and bonus depreciation.
Kent Bacus, Executive Director of Government Affairs, National Cattlemen’s Beef Association (NCBA)Businesses of all sizes across the country rely on this common sense tax policy to immediately deduct investments they make in new tech and equipment. #FullExpensing makes it easier for companies to invest in their own future and spur economic growth – and we need that now more than ever.
Economic Investment AllianceRestoring EBITDA will boost U.S. competitiveness, drive economic expansion, support job creation, and increase wages, especially in capital-intensive sectors like manufacturing, infrastructure, and mining. These industries are the backbone of the American economy and have been disproportionately impacted by the current EBIT-based limit.
Michael O’Rielly, Restore American Investment Now (RAIN) CoalitionRestoring research and development expensing in the year it occurs has been one of the leading tax policy priorities for the tech sector…We also applaud lawmakers for bolstering U.S. competitiveness and helping provide U.S. companies with a more level playing field against their international competitors by maintaining the current GILTI, FDII, and BEAT rates.
Lara Muldoon, Vice President of Government Affairs, Information Technology Industry Council (ITI)