Weekly Capitol Report

Fighting to deliver pro-growth, pro-family, and pro-America tax reform

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Washington, January 26, 2024 | comments

After President Donald Trump took office in 2017, he and I worked hand-in-hand to put together a tax reform bill that would put American workers, families, farmers, and small businesses first. What we came up with was the Tax Cuts and Jobs Act (TCJA), landmark legislation that led to a nearly 5% increase in wages for American workers, a full 1% increase in economic growth over the average of the previous decade, and the lowest unemployment and poverty rates in 50 years.

Unfortunately, some of the key provisions in TCJA that helped create the strongest economy in my lifetime have phased out or have already expired. That's why, as Chairman of the Ways and Means Committee – the chief tax writing committee in Congress – I authored the Tax Relief for American Families and Workers Act: a pro-growth, pro-family, and pro-America tax package that builds on the success of TCJA and, just like that landmark legislation, puts workers, families, farmers, and small businesses first.

One of the bill’s most important provisions for families is the child tax credit (CTC). The Tax Relief for American Families and Workers Act enhances the CTC by growing the benefit to reflect the higher prices families are paying today and eliminating an existing penalty on large working families to ensure each child is treated the same. Under current law, low- and middle-income taxpayers with multiple children are often unable to claim the full credit. In this legislation, a Missouri family with three children making minimum wage would be eligible for a $5,400 CTC, which is the maximum amount per child. If the CTC is left unchanged, that same family would only be eligible for $3,462.60. The CTC is a proven, simple, straight-forward solution to help families take care of their kids by putting more of Americans’ hard-earned money back in their pockets.

Small businesses are the engines that drive America’s economy. My pro-growth tax bill restores or enhances key parts of TCJA that have a proven track record of helping businesses grow and create jobs. The interest deductibility provision will create 867,000 jobs and generate $58 billion in additional take-home pay for workers by helping businesses struggling with sky-high interest rates. The bill also expands full and immediate expensing to allow businesses to fully deduct the cost of equipment, machines, or vehicles – whether it’s a farmer buying a new combine, a small business purchasing another delivery truck, or a factory adding a conveyor line. This provision will increase investment in the economy by $400 billion and create 73,000 new jobs. The legislation’s Research and Development credit sharpens America’s competitive edge with China and supports over 21 million jobs while spurring $70 billion in investment.

In addition to supporting families, boosting jobs and wages, and growing our economy, the Tax Relief for American Families and Workers Act will save taxpayers over $70 billion.

This economy has been an absolute nightmare for American families. By passing this pro-growth, job-creating legislation, Congress can provide urgent relief to workers, families, farmers, and small businesses when they need it most. Delivering for the working class will always be my top priority, and I will continue fighting tooth and nail to get common sense tax reform to the president’s desk.

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