Cape News

The 2017 tax cuts introduced under the Trump administration provided financial relief to many American families, but these benefits are at risk of expiring if Congress does not take action. The expiration could lead to increased taxes for workers, families, farmers, and small businesses. Notably, 40 million families may see their Child Tax Credit reduced from $2,000 per child to $1,000.

Jason Smith, Chairman of the Ways and Means Committee, emphasized the importance of maintaining access to the Child Tax Credit. He stated: “Raising a family can be challenging enough without Washington pulling the rug out from under parents. But that’s exactly what will happen if the 2017 Trump tax cuts are allowed to expire next year. Forty million families will see their Child Tax Credit – a pro-family policy that was created, and later doubled, by Republicans to provide families relief and support – slashed in half."

Smith also highlighted that if Congress fails to act promptly, "the requirement that children have a Social Security Number in order to be eligible for the credit will also go away – eliminating a key protection against fraud." He urged Congress to act swiftly to prevent an increased tax burden on families.

The potential expiration of these tax cuts could have significant impacts beyond just the Child Tax Credit. The average taxpayer might face a 22 percent tax hike. A typical family of four with a median income could experience a $1,695 increase in taxes. This amount is equivalent to about nine weeks' worth of groceries for such a family.

Furthermore, other provisions set to expire include reductions in Guaranteed Deductions affecting 90 percent of taxpayers and changes impacting small businesses and family-owned farms.

Congress has only 149 legislative days next year to address these issues before the current policies expire.