GOP push to make Trump’s 2017 tax cuts permanent
Tax season has come to a close, but the work is far from over for Congressional Republicans. This year, they have transformed tax season into “sales” season as they push to reauthorize President Donald Trump’s 2017 tax cut package. Without action from Congress, these tax cuts are set to expire later this year, leading to a spike in rates for nearly every American.
“We absolutely have to make the tax cuts permanent,” stated Rep. Tom Tiffany of Wisconsin. “We’ve got to get the renewal of the President’s Tax Cuts and Jobs Act. That’s absolutely essential,” added Sen. Mike Rounds of South Dakota. The urgency to act stems from the potential tax increases that could affect families across the country if the tax cuts are not extended.
If Congress fails to renew the tax cuts, the Tax Foundation estimates that a married couple earning $165,000 annually could face an additional $2,400 in taxes. Similarly, a single parent making $75,000 a year might see a $1,700 increase in their tax bill. These potential increases could have a significant impact on families’ budgets and overall economic stability.
While technically Republicans are not cutting taxes with this bill, they are aiming to keep tax rates the same as they have been since the 2017 tax cuts were implemented. The expiration of these cuts was a strategic move to avoid counting them against the deficit, but now Congress must act to prevent taxes from rising.
On the other side of the aisle, Democrats are looking to capitalize on the perceived tax disparity, with Senate Minority Leader Chuck Schumer accusing Trump of wanting to give his “billionaire buddies” a bigger tax break. The potential tax increases have put pressure on Republicans to find a solution that benefits all Americans.
Some Republicans are considering raising rates on the wealthy or corporations to offset the cost of extending the tax cuts. However, this proposal has faced pushback from top GOP leaders who are wary of deviating from their stance on tax reduction for everyone.
As Congress works behind the scenes to draft the bill, there is uncertainty about what it will ultimately include. Discussions about reducing the “SALT” deduction and other provisions are ongoing, with lawmakers aiming to secure enough votes to pass the legislation.
With a slim majority in the House, Republicans are facing a challenging task of crafting a bill that satisfies all parties involved. The goal is to have the legislation completed by Memorial Day to provide stability to the economy and reassure taxpayers about the upcoming tax season.
In the midst of this legislative process, tax season has become a sales season for lawmakers and the public alike. The urgency to reauthorize the 2017 tax cuts has put pressure on Congress to act swiftly and decisively to prevent tax increases for millions of Americans.
