Cape News

After President Donald Trump took office in 2017, a tax reform bill was introduced with the aim of prioritizing American workers, families, farmers, and small businesses. This bill, known as the Tax Cuts and Jobs Act (TCJA), proved to be a game-changer for the economy, resulting in significant wage increases, economic growth, and reduced unemployment and poverty rates. However, some of the key provisions of the TCJA have either phased out or expired, prompting the need for further tax reform.

In response to this, the Chairman of the Ways and Means Committee, who played a pivotal role in the creation of the TCJA, has authored a new tax package called the Tax Relief for American Families and Workers Act. This new legislation aims to build on the success of the TCJA while continuing to prioritize the needs of workers, families, farmers, and small businesses.

One of the critical provisions of the Tax Relief for American Families and Workers Act is the enhancement of the child tax credit (CTC). This provision recognizes the increasing costs faced by families today and eliminates penalties on large working families, ensuring that each child is treated equally. The legislation seeks to address the issue where low- and middle-income taxpayers with multiple children are unable to claim the full credit. By implementing this legislation, a Missouri family with three children earning minimum wage would be eligible for a maximum CTC of $5,400 per child, compared to the current limit of $3,462.60. This increase in the CTC will provide much-needed financial relief to families, allowing them to better care for their children.

Recognizing the vital role that small businesses play in driving the economy, the Tax Relief for American Families and Workers Act aims to restore or enhance key provisions of the TCJA that have proven effective in helping businesses grow and create jobs. The provision allowing interest deductibility is projected to create 867,000 jobs and generate an additional $58 billion in take-home pay for workers. Furthermore, the legislation expands full and immediate expensing, enabling businesses to fully deduct the cost of equipment, machines, or vehicles. This provision is expected to drive $400 billion in investment and create 73,000 new jobs. Additionally, the Research and Development credit included in the legislation will support over 21 million jobs and spur $70 billion in investment, helping the United States maintain its competitive edge.

Aside from its impact on families, jobs, and the economy, the Tax Relief for American Families and Workers Act also aims to provide substantial savings for taxpayers, amounting to over $70 billion.

In light of the challenging economic circumstances faced by American families, the passage of this pro-growth and job-creating legislation is crucial. It will provide much-needed relief to workers, families, farmers, and small businesses during these trying times. The commitment to delivering for the working class remains a top priority, and efforts to achieve common-sense tax reform will continue relentlessly until it reaches the president's desk.