Conservative Groups Urge House Vote on American Families and Jobs Act

In a letter released today, Americans for Tax Reform led a coalition of more than 30 conservative and free-market organizations urging the House of Representatives to pass the American Families and Jobs Act, a sweeping tax relief package for individuals and small businesses recently passed out of the House Ways and Means Committee with the support of every Republican committee member.

Grover Norquist, President of Americans For Tax Reform issued the following statement accompanying the release of the letter:

“Joe Biden and the Democrats raised taxes on American families and flooded the economy with wasteful spending that sent inflation soaring to record levels. The American people are suffering. Economic issues like inflation and taxes continue to be the top priority of voters by an overwhelming margin. Congress must offer an alternative economic vision to “Bidenomics,” that cuts taxes, increases wages, and grows the economy. The American Families and Jobs Act is that plan. I urge the House of Representatives to take up and pass this bill.”

A copy of the full letter can be read [HERE] or below:

September 11, 2023

Re: Conservative Groups Urge Vote on American Families and Jobs Act

Dear Members of Congress,

We write in support of the American Families and Jobs Act — legislation that will provide necessary tax relief to struggling Americans facing rising prices and economic hardship.

We believe it is vital for Congress to offer an alternative to the failed economic policies of the Biden Administration that flooded the country with unnecessary spending, raised taxes and slowed growth.

The American Families and Jobs Act provides significant tax cuts and tax simplification for households and small businesses that will spur economic growth, increase jobs and lead to higher wages for workers.

This legislation provides a direct middle income tax cut by increasing the standard deduction and promotes economic growth by extending expired and expiring provisions of the 2017 Tax Cuts and Jobs Act. It repeals market-distorting subsidies from the misnamed Inflation Reduction Act and eliminates the new IRS 1099-k paperwork reporting rule targeting Venmo and PayPal transactions.

The American Families and Jobs Act deservedly passed out of the House Ways and Means Committee with the support of every Republican committee member.

We now urge the full House to swiftly consider this bill and for every Member of Congress to vote in support of the American Families and Jobs Act.

Below are key provisions of the American Families and Jobs Act that simplify the tax code, reduce taxes for families and businesses, and lead to higher wages and new or better jobs.

1. Middle Income Tax Cut

This legislation would provide a direct middle income tax cut through a new increase in the standard deduction. This “guaranteed deduction bonus” would increase the standard deduction by $2,000 for single-filers and $4,000 for joint-filers over the next two years.

Thanks to the Tax Cuts and Jobs Act (TCJA), 90 percent of Americans, almost all low- and middle-income, choose to claim the standard deduction. This reform would significantly reduce Americans’ tax burden by increasing the income they do not have to pay taxes on to $15,850 for single-filers and $31,700 for joint-filers.

This provides further tax simplification for hardworking households. Since Republicans enacted the Tax Cuts and Jobs Act (TCJA) in 2017, roughly 35 million households no longer have to itemize deductions.

2. Repeals Biden’s 1099-K IRS Paperwork Nightmare

As part of their so-called “stimulus” bill in 2021, Democrats lowered the 1099-K reporting threshold from $20,000 and at least 200 transactions to $600 with no required transactions, empowering the IRS to target gig workers and any American who uses Venmo or PayPal. This legislation would repeal this harmful policy, ensuring Americans will not be buried in IRS paperwork or made to pay taxes they don’t owe.

3. Extends Full Business Expensing

This legislation would extend full business expensing implemented in the TCJA for new investments. This policy helps encourage new investment, which helps promote greater facility expansion, economic productivity, job growth, and higher wages.

This policy also simplifies the tax code by equalizing the tax treatment of new investments with other business expenses such as wages, rent, and healthcare costs. There is no reason a business should be able to deduct the costs of its utilities, rent, insurance, office supplies, etc. but be required to deduct the cost of their property over decades.

4. Restoring Immediate Deduction of R&D Costs

The TCJA allowed companies to immediately deduct research and development costs. Previously, companies were forced to gradually spread those expenses over time for as long as 15 years. In 2022, this became reality again, as this provision of TCJA expired. The American Families and Jobs Act restores immediate deduction of R&D costs, re-incentivizing American companies to innovate.

5. Restore TCJA Interest Deductibility

Under the TCJA, businesses could deduct net interest expenses up to 30 percent of earnings before interest, tax, depreciation, and amortization (EBITDA). Unfortunately, starting in 2022, the deduction was narrowed to 30 percent of earnings before just interest and tax (EBIT). This increased the tax burden for many capital-intensive taxpayers, including manufacturing businesses, especially because of today’s notably higher interest rates.

6. Increases Small Business Immediate Expensing to $2.5 Million

The TCJA doubled the immediate expensing limit for small businesses from $500,000 to $1 million. This provision helped small businesses raise productivity, increase wages, and hire more staff. The American Families and Jobs Act would build on this success, by raising the limit to $2.5 million.

7. Repeals Democrats’ New Oil Tax

The legislation will help Americans pay less at the pump by fully repealing Democrats’ $12 billion tax hike on crude oil passed in the Inflation Reduction Act. Democrats imposed a 16.4 cents-per-barrel tax on crude oil and imported petroleum products. This tax has been passed on to consumers in the form of higher gas prices.

8. Eliminates a Burdensome IRS Reporting Rule

Currently, business owners are required to send tax forms to contractors they use if the contractors provide over $600 worth of work to their business. This rule — and threshold level — was established in 1954, and thus has not been inflation-adjusted in almost 70 years. The American Families and Jobs Act would increase this reporting threshold to $5,000, significantly reducing red tape for small businesses.

The undersigned organizations urge the full House of Representatives to vote on this legislation and for every Member of Congress to vote in support of the American Families and Jobs Act.

Onwards,

Grover Norquist

President, Americans for Tax Reform

Lisa B. Nelson

CEO, ALEC Action

Bob Carlstrom

President, AMAC Action

Steve Pociask

President & CEO, The American Consumer Institute

Thomas Pyle

President, American Energy Alliance

Ryan Ellis

President, Center for a Free Economy

Marty Conors

Center-Right Coalition Alabama

Former Chairman of the Alabama Republican Party

Tom Schatz

President, Citizens Against Government Waste

Phil Kerpen

President, Committee to Unleash Prosperity

Iain Murray

Senior Fellow, Competitive Enterprise Institute

Gerard Scimeca

Chairman, Consumer Action for a Strong Economy

James Erwin

Executive Director, Digital Liberty

Adam Brandon

President, FreedomWorks

George Landrith

President, Frontiers of Freedom

Cameron Sholty

Executive Director, Heartland Impact

James Taylor

President, Heartland Institute

Heather R. Higgins

CEO, Independent Women’s Voice

Seton Motley

President, Less Government

Tim Jones

Former Speaker, Missouri House

Chairman, Missouri Center-Right Coalition

Pete Sepp

President, National Taxpayers Union

Doug Kellogg

Executive Director, Ohioans for Tax Reform

Tom Hebert

Executive Director, Open Competition Center

Jeff Kropf

President, Oregon Taxpayer Coalition and the Oregon Capitol Watch Foundation

Daniel J. Erspamer

CEO, Pelican Institute for Public Policy (Louisiana)

William L. O’Brien

Chairman, Pine Tree Public Policy Institute

Sponsor of the New Hampshire Bi-monthly Center Right Meeting

RNC National Committeeman for New Hampshire

Daniel Turner

Founder & Executive Director, Power the Future

Mike Stenhouse

CEO, Rhode Island Center for Freedom & Prosperity

Paul Gessing

President, Rio Grande Foundation

David Miller

Chair, Southwest Ohio Center Right

David Williams

President, Taxpayers Protection Alliance

Kevin Riffe

West Virginia Center-Right Coalition Leader

Saulius “Saul” Anuzis

President, 60 Plus Association

James L. Martin

Founder/Chairman, 60 Plus Association