President Biden’s incompetent handling of the economy has produced historic levels of inflation, including high food prices, unaffordable housing and soaring energy costs. Rising prices are outpacing wage growth, forcing many people to take on second jobs and tap their retirement savings.
Democrats’ reckless multi-trillion-dollar, deficit-financed Washington spending spree has fueled inflation and harmed families.
Americans need help.
Republicans have a strong record of bringing relief to American families and businesses. In 2017, we passed the most comprehensive overhaul of our tax code in more than three decades. The Tax Cuts and Jobs Act (TCJA) reduced taxes on middle-class families and small businesses nationwide and created nearly five million jobs in two years. It also delivered the lowest unemployment rate in 50 years, all-time low unemployment for African American and Hispanic workers and the fastest wage growth in a decade.
House Republicans are ready to build upon that success. Under the leadership of Kevin McCarthy, we recently unveiled our “Commitment to America,” which includes a plan to reverse the economic misery caused by Democrats and get our country back on track.
This plan fights inflation, lowers the cost of living, creates good-paying jobs and brings stability to the economy through pro-growth tax policies. It’s the kind of certainty Americans need and deserve now more than ever.
As part of this effort, I recently introduced the TCJA Permanency Act, a bill that makes permanent many of the key provisions of the historic 2017 tax reform measure that are scheduled to expire after 2025.
Most importantly, the TCJA Permanency Act keeps in place today’s tax rates for individuals and families and preserves the 20 percent deduction for small businesses. Together, these provisions ensure that taxes won’t go up for middle-class Americans – allowing people to keep more of their hard-earned money.
If we fail to pass my bill, the Child Tax Credit would be cut in half in 2026. This bill also locks in the higher standard deduction, which increases the amount of tax-free income a middle-class family can earn while simplifying the tax filing process for 9 out of 10 Americans.
Notably, this bill reflects the depth and breadth of the Republican commitment to American families and small businesses. More than 80 of my colleagues have joined me in cosponsoring this important legislation, which builds upon many different individual provisions they have championed.
The radical left wants to keep taxes high to fuel the Washington spending machine. They oppose my bill to let people keep more of their own hard-earned money. If we do nothing, taxes for families and small businesses will go up in 2026. These are not new, immediate tax cuts. Rather, the TCJA Permanency Act assures families and small businesses that we will not raise their taxes amid 40-year high inflation and a recession.
For families already struggling to get by thanks to Bidenflation, it means not having to worry about looming tax hikes. According to the Tax Foundation, a single mom of two earning $52,000 a year would face a $1,500 tax increase and a married couple with two children and $85,000 in income, would be hit with an additional $1,700 in taxes if these provisions expire.
For small businesses, the TCJA Permanency Act provides the tax certainty needed to make costly investments in items with long productive lives, like equipment and machinery. That will help tame inflation by giving manufacturers the ability to increase production to meet soaring demand.
Outside experts agree on the need for this legislation.
Grover Norquist, president of Americans for Tax Reform, has endorsed the TCJA Permanency Act saying, “This bill makes it clear that protecting the pro-growth tax cuts passed in 2017 remains a top priority for Republicans when they take back Congress… The TCJA Permanency Act will help right the ship and get the American economy growing again.”
Democrat inflation is hurting Americans. The TCJA Permanency Act is a real, tangible plan to restore economic sanity for millions of families and small businesses across the country.
As my colleague House Ways and Means Committee Republican Leader Kevin Brady (TX) recently said, this legislation will “lock in low taxes for families and small businesses struggling with record inflation.” That’s a much-needed change from the disastrous policies of the last two years.
Vern Buchanan represents Florida’s 16th District in the United States House of Representatives and is the co-chairman of the bipartisan Florida delegation. Buchanan is second in seniority on the Ways and Means Committee, where he serves as the lead Republican of the Health Subcommittee.