In a recent interview with Larry Kudlow, Jason Smith, Chairman of the Ways and Means Committee, emphasized the urgency of extending the Trump tax cuts to prevent what he described as "the largest tax hike in American history." Smith highlighted the necessity of implementing pro-growth and pro-worker tax policies promptly.
During the interview, Smith reiterated the Republican commitment to fulfilling President Trump's economic agenda. He stated, "The President was specific about what he wanted to deliver, and that is an extension of his successful 2017 Trump tax cuts… We know what President Trump wants and what 76 million Americans voted for. If we don’t hit out the gates running, we’re going to be in trouble."
Smith also praised the efforts of the Ways and Means Committee in preparing for a potential Republican trifecta. He noted that House Republicans are prepared to advance Trump's economic package swiftly. "House Republicans are ready to pass the President’s economic package," he said. "We’ve been working on this since April with hopes that we’d have a unified Republican government."
Smith pointed out that failing to extend key individual tax policies from the Trump Tax Cuts could result in significant financial impacts for many Americans. According to Smith, if these cuts expire:
- The average taxpayer would face a 22% increase in taxes.
- A family of four earning $80,610 would see their taxes rise by $1,695.
- Forty million families could see their Child Tax Credit reduced by half.
- Ninety percent of taxpayers might experience a reduction in their Guaranteed Deduction.
- Twenty-six million small businesses could encounter a 43.4% tax rate if certain deductions expire.
- Seven million taxpayers might be affected by the return of the Alternative Minimum Tax.
- Two million family-owned farms could have their Death Tax Exemption cut by half next year.
These potential changes underscore Smith's call for immediate legislative action to maintain current tax benefits.
Alerts Sign-up