Americans for Tax Reform strongly supports Representative Vern Buchanan’s TCJA Permanency Act (H.R.976) which would make the Republican tax cuts passed in 2017 permanent. Buchanan is joined by 72 of his House Republican colleagues as original cosponsors in introducing this bill.
Grover Norquist, President of Americans for Tax Reform, issued the following statement applauding the bill:
“The Tax Cuts and Jobs Act cut taxes for Americans across all income groups and grew the economy. President Biden and Democrats raised taxes on all Americans and drove a healthy economy into the ground. Biden made it clear in his State of the Union Address that he plans to continue raising taxes, killing jobs and spending more of other people’s money. Rep. Buchanan’s legislation makes it clear that protecting the 2017 Republican tax cuts remains a top priority for the Republican-led House. Every lawmaker should back this bill.”
The Tax Cuts and Jobs Act reduced individual income rates across the board and doubled the standard deduction. The TCJA provisions targeting individual income rates had a sizeable impact on tax liability for the middle class.
The Tax Cuts and Jobs Act also doubled the maximum child tax credit (CTC) from $1,000 to $2,000 per child under age 17 and increased the phase out thresholds from $75,000 to $200,000 for single filers and $110,000 to $400,000 for joint filers. This expansion has been shown to have a large impact on American families’ tax bills, with 36 million households earning $200,000 or less receiving an average credit of $2,002.
If no Congressional action is taken, 23 different provisions of the 2017 Republican tax law are set to expire after 2025. According to the Tax Foundation, most Americans will see a tax hike if these provisions are not made permanent or extended. Representative Buchanan’s bill addresses these concerns by:
- Permanently lowering tax rates for individuals and families, so hardworking Americans can keep more of their hard-earned money.
- Preserves the 20 percent deduction for small businesses, ensuring Main Street businesses won’t pay more in taxes at a time when costs are already eating up their bottom line.
- Keeping the doubled child tax credit, encouraging workforce participation, and helping parents.
- Maintaining the higher standard deduction, allowing middle-class families to increase the amount of tax-free income they can earn.
- Permanently simplify the tax filing process, allowing 9 out of 10 Americans to get the full benefit of tax deductions without the headache of tracking receipts or itemizing.
- Expand 529 savings plans, which allow parents to save more of their own money to use on their child’s education.
Americans for Tax Reform applauds Rep. Buchanan and his Republican colleagues for introducing the TCJA Permanency Act and urges all Members of Congress to support the bill.