The Tax Cuts and Jobs Act was a historic piece of legislation that brought real relief to over 90% of Americans.
Between 2018 and 2025, Americans will see a $1.17 trillion tax reduction as a result of the bill. In 2018, a family of four earning $73,000 will see over $2,000 in tax cuts, while a single parent with one child earning $41,000 per year will see $1,304 in tax cuts.
Despite the desperate attempts by the Democrat Party to smear the Tax Cuts and Jobs Act as Armageddon, the numbers show otherwise.
For a family of four, an extra $2,000 per year is a lot of help. That money can put more food on the table, gas in the car, or pay for a family vacation. These savings may be crumbs to Nancy Pelosi, with her $30 million net worth, but they have been extraordinarily helpful to average Americans.
Unfortunately, procedural hurdles have prevented lawmakers from making these provisions permanent. If Congress does nothing, these important tax cuts will sunset in 2026.
Congressman Rodney Davis (R-Ill) has introduced legislation to alleviate this problem. H.R. 4886, the “Permanent Tax Cuts for Americans Act,” would make these temporary tax cuts a permanent reality for the American people. [Read ATR’s letter in support of H.R. 4886 here]
The provisions include some of the most beneficial aspects of the GOP tax bill. The following provisions would become a permanent part of the tax code if H.R. 4886 is signed into law:
- A $12,000 standard deduction for an individual, or a $24,000 standard deduction for a family. If allowed to sunset, the standard deduction would revert to $6,000 for individuals or $12,000 for a family.
- The reduction of nearly every income tax bracket, a tax cut of $1.2 trillion between 2018 and 2025.
- A $2,000 Child Tax Credit (CTC). If allowed to sunset, the CTC would revert to $1,000 per child.
- A 20% deduction for pass-through businesses, which are largely small businesses.
- An $11 million death tax exemption. If allowed to sunset, the exemption would revert back to $5.49 million.
- An increase in the Alternative Minimum Tax exemption so that it only hits families earning $1 million or more, a tax cut of $572 billion between 2018 and 2025.
The individual tax reductions in the GOP tax bill have helped American workers and families. These provisions are vital to the Tax Cuts and Jobs Act’s success, and byzantine procedural constraints shouldn’t keep them from becoming permanent.
All members of Congress should support H.R. 4886 and make these tax cuts permanent for all Americans.