Cape News

The Tax Relief for American Families and Workers Act, a pro-worker, pro-family, and pro-American tax cuts package, has passed the House of Representatives with overwhelming support and is one step closer to becoming law. This legislation, which aims to benefit working-class families in southeast and south-central Missouri, includes key reforms to the Child Tax Credit (CTC).

According to Congressman Jason Smith, Chairman of the Ways and Means Committee, the CTC is critically important for working-class families. Originally created by Republicans in the 1990s, the CTC provides additional tax relief for families struggling with the high costs of raising children. In 2017, President Donald Trump's Tax Cuts and Jobs Act (TCJA) doubled the CTC to $2,000.

More than 73,920 families in southeast and south-central Missouri currently claim the CTC. Under the Tax Relief for American Families and Workers Act, a family with three children making minimum wage would now be eligible for a $5,400 credit, the maximum amount per child. However, if Congress does not pass this bill, that same family would only be eligible for a credit of $3,462.60.

Congressman Smith emphasizes the importance of extending the provision in the TCJA that prevents illegal immigrants from benefiting from the CTC. He states that the current guardrails protecting working American families from the misuse of the CTC by illegal immigrants are set to expire in 2025. Therefore, it is crucial for Congress to act quickly and pass the Tax Relief for American Families and Workers Act to ensure these protections remain in place.

The new tax relief package also includes provisions to support small businesses and farmers. It raises the expensing cap for small businesses and farmers, benefiting over 30,000 farmers and ranchers in southeast and south-central Missouri. Furthermore, the bill introduces a 100 percent immediate expensing provision, allowing farmers and ranchers to write off the equipment and machinery they use to produce high-quality agricultural products.

In addition to these measures, the Tax Relief for American Families and Workers Act aims to reduce burdensome red tape for businesses. It increases the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and indexes it for inflation. This change will reduce paperwork and give farmers, ranchers, and small businesses more time to focus on their operations.

Congressman Smith, who is also a family farm owner, recognizes the importance of investing in agriculture research. The bill allows businesses of all sizes to immediately deduct the cost of their U.S.-based research and development (R&D) investments. This provision will benefit innovative, tech-driven agricultural businesses in southeast and south-central Missouri, helping farmers maximize production and achieve their crop goals.

Congressman Smith concludes by expressing his eagerness to work with the United States Senate to pass this bill and deliver much-needed relief to Missouri families, farmers, and businesses.