Cape News

If the Trump tax cuts from 2017 are allowed to expire, American families may face increased taxes. The potential expiration would reduce both the Guaranteed Deduction and the Child Tax Credit by half, while increasing tax rates for all taxpayers. Representative Brian Fitzpatrick of Pennsylvania has highlighted the concerns voiced by families who have experienced financial strain under the current administration.

Jason Smith, Chairman of the Ways and Means Committee, emphasized that "Washington has a mandate from the American people to renew the Trump tax cuts." He warned that without action, an average family of four could see their taxes rise equivalent to nine weeks' worth of groceries. Smith noted that over 120 listening sessions in 20 states revealed significant worries among working families about potential financial challenges if these tax cuts lapse.

The Working Families Tax Team is actively gathering public input as they prepare for the possible expiration in 2025. They report that workers, families, and small businesses fear negative impacts if Congress does not extend these tax benefits. The 2017 cuts reportedly led to increased paychecks and raised take-home pay for many Americans.

Without renewal, approximately 207 million U.S. taxpayers could experience an average tax hike of 22 percent. For a median-income family of four, this would mean an increase of $1,695 in taxes. Additionally, changes to deductions and credits could complicate tax filing for many.

Critics point out that prices have risen significantly since President Biden took office, with real wages falling by 3.1 percent during his administration. Mortgage payments on new homes have nearly doubled since January 2021.

At a field hearing at the Iowa State Fair, Sarah Curry shared how previous tax cuts benefited her family financially: "Every dollar that my husband and I earn... goes towards our children." She explained how reduced taxes helped cover unexpected expenses like therapy for her children and home repairs.

Curry also expressed concern about potential increases in state taxes due to federal changes: "Reducing the standard deduction would negatively impact my family because it would raise my taxable income both at the federal and state level."