NTF issue paper: cong216.doc. 2-22.
NEBRASKA TAXPAYERS FOR FREEDOM ISSUE PAPER:
CONG. BACON AND SMITH JOIN FIGHT TO PROTECT OUR TAX CUTS.
BACKGROUND. President Trump in one of his first victories for taxpayers passed a tax reform bill for individual rates and deductions in Nov. 2017 that lowered the federal taxes for many Americans. However, many taxpayers do not realize that these tax cuts will expire in 2025, unless Congress extends them permanently, which the Senate in 2017 failed to do, citing budget reconciliation rules. Permanency efforts have failed annually in Congress, but there is opportunity for success in 2022.
THE BILL. Conservative Cong. Rodney Davis (Ill.) reintroduced HR 6658 with 93 co-sponsors, including NE Cong. Bacon and Smith. This bill currently is in the House Ways and Means Committee, awaiting a vote to advance it to the full House for deliberation. Larry Kudlow, former National Economic Council Director to Pres. Trump, called for permanent tax cuts. He declared, “These were not tax cuts for the rich. Real wages for the lowest 10% of Americans grew by 8% compared with a 5% rise for the top 10% of earners. The wealth of Americans in the bottom 50% grew three times as fast as the wealth of the richest 1%.” Davis reminded us that under the leadership of Pres. Trump, taxpayers received the first major tax relief in 31 years, that the president delivered on his promise to bring needed tax relief to middle class families. Making the Trump tax cuts permanent would continue to expand our economy, create new jobs, and provide financial advancement for families. With rampant inflation and prices soaring, we desperately need a successful effort to make key tax cuts permanent, so that we can get our economy roaring and help working families afford their everyday life, say supporters.
BILL SPECIFICS. As in the original legislation, every taxpayer will continue to receive a tax cut with lower rates. The standard deduction doubled to $12,950 for single filers and $25,900 for joint filers, inflation adjusted annually. The child tax credit doubled to $2,000, with up to $1,400 refundable. Retained are popular deductions like mortgage interest, state and local taxes capped at $10,000, medical expenses, and charitable donations. Retained also is the first ever 20% tax deduction for small business owners who comprise the backbone of our economy.
TAKE ACTION NOW. President Trump fought hard to pass these tax cuts in 2017, and we must lobby hard to keep them despite a stubborn Congress. We may not get another opportunity to solidify our tax cuts for several years. Using the information above, state how this legislation affects you personally, your family, or your business, then lobby your representative and 2 NE senators to pass this legislation in both Houses.
Email netaxpayers@gmail.com for congressional contact information and to join our NTF Congress Watch Project.
Research, documentation, and analysis for this issue paper done by Nebraska Taxpayers for Freedom. This material copyrighted by Nebraska Taxpayers for Freedom, with express prior permission granted for its use by other groups in the NE Conservative Coalition Network. 2-22. C