Ways and Means Hearing Highlights the Importance of Making Tax Cuts Permanent
Lawmakers, small businesses, and manufacturers urge extension of 2017 tax cuts for much-needed job creation, wages, and investment in America.
Chairman Jason Smith: “If we want to continue President Trump’s legacy of a strong economy, Congress must act swiftly to make the tax cuts permanent.”
At the first policy hearing of the 119th Congress, lawmakers heard testimony from Americans on the importance of making the Trump tax cuts permanent.
The hearing highlighted the opportunity before lawmakers to support American workers, families, farmers, and small businesses that would suffer if the Trump tax cuts expired:
26 million small businesses will be hit with a 43.4% top tax rate, more than 20 points higher than what businesses pay in China.
91% of all taxpayers will see their guaranteed deduction slashed in half.
On what’s at stake for small and family-owned businesses:
Small and family-owned businesses are facing uncertainty at the threat of a 43.4% top tax rate.
Rep. Greg Steube (R-FL): “The expiration of TCJA would result in small businesses closing, job loss, and American families suffering just so the government can take more of their hard-earned money. The good news is that Congress can avoid such economic catastrophes by extending and making permanent TCJA provisions.”
On manufacturers who support pro-growth tax policies:
American manufacturers benefited from several aspects of the Trump tax cuts, including 100% immediate expensing.
Courtney Silver, the president and owner of Ketchie Inc., a small North Carolina manufacturer, testified:
“We need pro-growth tax policies that are permanent, that are consistent, that are predictable, to help us be able to grow.”
“… Nearly 6 million American jobs are at risk unless Congress preserves pro-manufacturing tax policies. America will also lose more than $500 billion in worker pay and more than $1 trillion in GDP. Manufacturing will bear the brunt of this economic devastation, with more than 1 million manufacturing jobs at stake.”
On the benefits of the Tax Cuts and Jobs Act:
The 2017 Tax Cuts and Jobs Act led to a 20% increase in domestic investment and a more than $6,000 increase in real median household income in the first two years following tax reform.
Rep. Nicole Malliotakis (R-NY): “I think we as members are very excited about this opportunity to build on the success of [TCJA]. It created millions of jobs, it lifted middle-class wages, it brought unemployment down to record lows for African Americans, for Hispanics. It did great things for women entrepreneurs. We’re really looking at it being not only extended and made permanent but also adding some additional provisions to make it stronger.”
Americans for Prosperity was proud to work with President Trump and leaders in Congress to support the passage of the TCJA in 2017. We are calling on Congress to extend and improve on President Trump’s historic tax cuts. Americans must unite in telling Washington that now is not the time for higher taxes.