Cape News

On August 16, the Ways and Means Committee convened at the Iowa State Fair to gather input from Midwesterners regarding the impact of the 2017 Trump Tax Cuts. This session was part of an ongoing initiative to engage directly with American workers, families, farmers, and small businesses in order to shape tax policies that affect their daily lives.

The committee's chairman emphasized that these hearings are held outside Washington to ensure that everyday Americans, rather than lobbyists or think tank academics, have a say in tax policy. According to testimonies at these hearings, many working Americans believe that the Trump Tax Cuts were beneficial due to their pro-growth, pro-family, pro-worker, and pro-small business stance.

Proponents argue that the Trump Tax Cuts led to significant economic growth and record low unemployment rates. They claim that individuals earning less than $100,000 saw an average 16 percent reduction in their tax bills while the top 1 percent paid a higher share of taxes. Additionally, wage growth for workers in the bottom 10 percent outpaced those in the highest 10 percent by 50 percent.

Supporters contend that extending these tax cuts is crucial for continued economic prosperity. However, there is concern among them about potential new taxes proposed by Washington Democrats. If these tax cuts expire as planned, a family of four earning $75,000 could face an annual tax increase of $1,500. Similarly, a family of five with two earners making around $100,000 might see their taxes rise by nearly $7,500 annually. The Child Tax Credit and Guaranteed Deduction would be reduced by half along with other benefits.

Critics argue that additional taxes would exacerbate financial burdens on families who already pay multiple forms of taxes including property tax, income tax on wages and retirement funds, sales tax on goods and services purchased for basic needs such as groceries and gasoline. They also highlight concerns over inflation under the Biden-Harris Administration which they claim has increased prices by over 20 percent since taking office.

The committee's chairman vowed to continue efforts against what he termed as a "$7 trillion Biden-Harris tax hike," advocating instead for further tax relief aimed at alleviating economic strain on working-class Americans.