03.25.25

Republicans Want Working Americans to Keep More of Their Hard-Earned Money

The 2017 Tax Cuts and Jobs Act Lowered Taxes for American Families, Workers, and Small Businesses, and Senate Republicans Are Now Working to Make These Cuts Permanent

THE 2017 TAX CUTS AND JOBS ACT WAS AN OVERWHELMING SUCCESS FOR AMERICAN FAMILIES AND WORKERS

  • “Tax bills went down for most families and corporations.”

(The Wall Street Journal: Did the U.S. Tax Overhaul Do What It Promised? – 1/4/20)

  • “For households, the law cut tax rates, increased tax credits for families with children, sharply narrowed the alternative minimum tax and expanded the standard deduction — the minimum amount someone can earn before income taxes kick in.”

(The Wall Street Journal: Did the U.S. Tax Overhaul Do What It Promised? – 1/4/20)

  • “The Joint Committee on Taxation — Congress’s nonpartisan team of tax analysts — found that every income group would see a tax cut on average.”

(The New York Times: Face It: You (Probably) Got a Tax Cut – 4/14/19)

  • The Tax Cuts and Jobs Act (TCJA) has been responsible for creating over 1.4 million jobs nationwide since its passage in 2017.

(Tax Foundation: The Jobs Impact Of The Tax Cuts And Jobs Act By State, 2018-2027 – accessed 3/24/25)

  • “[T]here’s little question that the job market improved, particularly for those of prime working age, driven at least in part by greater consumer spending.”

(The Wall Street Journal: Did the U.S. Tax Overhaul Do What It Promised? – 1/4/20)

REPUBLICANS’ TAX LAW HELPED SMALL BUSINESSES – AND WORKERS – THRIVE

  • The TCJA helped small businesses: Nearly 80% of National Federation of Independent Business (NFIB) members polled in their 2021 Tax Survey report “described the tax law positively, compared to just 8% who had a negative view of the tax law.”

(NFIB Research Center: NFIB Tax Survey 2021 – accessed 3/24/25)

  • The TCJA “created a new deduction of 20% of net income for many pass-through business owners, effectively lowering their top rate to 29.6% from 37%.”

(The Wall Street Journal: The New Tax Law: Pass-Through Income – 2/13/18)

  • Nationally, 96% of small businesses are considered pass-through businesses, comprising 33 million businesses that employ more than 68 million workers. Out of those 33 million businesses, 25.9 million of them claimed the small business tax deduction in 2021.

(EY on Behalf of NFIB: Macroeconomic impacts of permanently extending the Section 199A deduction on small businesses – Sept. 2024)

  • “Another provision was intended to spur U.S. companies to bring foreign profits to the U.S., by ending a tax obligation previously triggered by such moves. In one sense, it worked: U.S. companies have shifted more than $1 trillion from foreign subsidiaries to their U.S. parents.”

(The Wall Street Journal: Did the U.S. Tax Overhaul Do What It Promised? – 1/4/20)

IF CONGRESS FAILS TO ACT, AMERICANS ALREADY STRUGGLING FROM BIDENOMICS WILL FACE A $4 TRILLION TAX INCREASE

  • “[L]etting the tax reforms lapse would result in a $4 trillion tax increase in 2026...”

(The Wall Street Journal: Editorial: Republicans Reconcile on Taxes – 2/14/25)

  • “While both businesses and individuals will be impacted, most of the provisions set to expire at the end of 2025 will have a notable impact on individuals and families:”

(Thomson Reuters: What to know about TCJA expiration – 9/13/24)

    • An average family of four making $80,000 would see a $1,700 tax increase.

(Tax Foundation: Tax Calculator: How the TCJA’s Expiration Will Affect You – 3/12/24)

    • Nearly six million jobs would be put at risk.

(National Association of Manufacturers: NAM Study: Tax Provisions’ Expiration Will Cost U.S. Jobs, Wages, GDP – 1/14/25)

    • GDP would shrink by $1.1 trillion.

(National Association of Manufacturers: NAM Study: Tax Provisions’ Expiration Will Cost U.S. Jobs, Wages, GDP – 1/14/25)

    • Employees would lose approximately $540 billion in compensation.

(National Association of Manufacturers: NAM Study: Tax Provisions’ Expiration Will Cost U.S. Jobs, Wages, GDP – 1/14/25)

    • The child tax credit would return to $1,000 per child, down from the TCJA level of $2,000.

(Bloomberg Government: Will Trump and Congress Extend TCJA Tax Cuts? – 2/20/25)

    • The standard deduction, which nearly 90 percent of taxpayers claim, would be cut roughly in half.

(Tax Foundation: Nearly 90 Percent of Taxpayers Are Projected to Take the TCJA’s Expanded Standard Deduction – 9/26/18)