The Tax Cuts and Jobs Act (TCJA) of 2017 is approaching the 6th anniversary of its enactment. When it was passed, the TCJA simplified the tax code, lowered tax rates for American taxpayers and businesses alike, and implemented a number of pro-growth policies such as full capital expensing for businesses. Around 80 percent of American taxpayers received a tax cut under the TCJA, with an average tax savings of over $2,100. Taxpayers also saw their compliance burdens lightened in terms of time and money when filing their taxes in the years following the TCJA. NTU was a driving force among taxpayer advocacy organizations behind the TCJA’s successful passage in 2017. However, the individual tax cuts and many other helpful provisions from the TCJA are set to sunset in 2025. It is vital that Congress reauthorize the TCJA to preserve the policies within the Tax Cuts and Jobs Act that have positively impacted taxpayers, businesses, and the economy.
NTU Executive Vice President Brandon Arnold issued the following statement:
The Tax Cuts and Jobs Act stands as a crucial pillar supporting economic growth and prosperity. With many beneficial TCJA provisions such as the individual tax rate cuts, child tax credit expansion, and larger standard deduction set to expire in 2025, it is imperative for Congress to reauthorize this important legislation. The TCJA has been incredibly beneficial for taxpayers and our nation's economy. At a time when the Biden administration and many in Congress consistently recommend chipping away at the TCJA’s victories for taxpayers, we should be focused on making the TCJA permanent so that taxpayers don’t see their tax burdens skyrocket in 2025.
President Biden and some members of Congress have already sought to prematurely end some of the TCJA’s most impactful policies. The Biden budgets have all recommended raising the corporate tax rate, which would only harm U.S. competitiveness on the world stage. Congress has seen the creation of the SALT Caucus, a group of legislators who wish to see the cap on state and local tax deductions raised or eliminated, which would create space for high-tax states to shift their own high tax burdens away from their own state governments. Just as with the passage of the TCJA, NTU has been on the forefront of calling for reforms to reauthorize the TCJA and extend its pro-growth provisions. NTU has offered bipartisan solutions that would save taxpayers money while maintaining stability, fostering growth, and simplifying the tax code. Congress should heed these solutions and reauthorize the TCJA so that it can continue to benefit taxpayers for years to come.