Cape News

Ways and Means Committee Chairman Jason Smith marked the seventh anniversary of the Tax Cuts and Jobs Act (TCJA) with a statement emphasizing its impact on the U.S. economy. The legislation, signed by President Trump in 2017, is described by Smith as "the most significant tax relief legislation in a generation."

Smith highlighted that the TCJA contributed to economic growth, with GDP increasing at a rate higher than the previous decade's average. He stated, "The success of the Trump tax cuts cannot be overstated," noting benefits for working-class families, small businesses, and farmers.

He urged Congress to extend expiring provisions of the TCJA to prevent a $4.6 trillion tax increase in 2025. Smith emphasized that "failure to extend" these provisions is not an option.

The statement included key facts about TCJA's impact: wages increased by 4.9% over two years; lower-income workers saw significant wage growth; real median household income rose by $5,000; and Americans earning under $100,000 received an average tax cut of 16%.

Smith also noted that TCJA increased taxes paid by the top 1% while reducing burdens on lower-income workers. In fiscal year 2022, tax revenues reached a record high of $4.9 trillion.

Looking ahead, several key policies from the Trump tax cuts are set to expire unless Congress acts within 149 legislative days next year. Potential impacts include a 22% average taxpayer hike and reduced Child Tax Credits for millions of families.

Smith warned that without action, many taxpayers would face higher rates due to changes such as the expiration of Section 199A Small Business Deduction and adjustments to estate planning for family-owned farms.