In a surprising turn of events, President Joe Biden’s promise to repeal President Trump’s 2017 Tax Cuts and Jobs Act may not come to fruition. The Trump tax cuts, which have been credited with turbocharging American job growth and national competitiveness, are not only still intact but may even be strengthened. The key to this lies in the hands of Senate Republicans, who have a chance to expand on these tax cuts and secure their permanency.
The House recently passed the Tax Relief for American Families and Workers Act (H.R. 7024), a comprehensive tax relief package that builds on the successes of the 2017 Tax Cuts and Jobs Act. This new bill aims to enhance American competitiveness with China, boost job creation, increase wages for workers, and promote new investment and innovation. However, it also serves another crucial purpose – extending the important cost recovery provisions of the 2017 Republican tax cuts.
Without congressional action, President Trump’s tax cuts are set to expire at the end of 2025. This means that their impact on the economy and American businesses would be limited in the long run. By passing the Tax Relief for American Families and Workers Act, Senate Republicans can ensure the permanency of these tax cuts and strengthen their bargaining position in future discussions about their fate.
While some GOP senators, led by Senate Finance Committee Ranking Member Mike Crapo, have raised concerns about certain provisions of the bill, such as the expansion of the Child Tax Credit, it is important for them to recognize the significance of this measure in the larger fight. Passing this bill would not only secure the future of the Trump tax cuts but also vastly improve Republicans’ position in any negotiations surrounding them.
During a hearing on the Tax Relief for American Families and Workers Act, Senate Finance Committee Chair Ron Wyden emphasized the importance of taking action now, stating that the bill’s policies would not be on the table in 2025 if it stalls out. While Republicans may dismiss this as mere political talk, it is essential for them to be prepared for any outcome. Even if they regain control of the Senate, Democrats could still follow through on their threat if they retain the White House or take back the House.
Conservative Republicans have every reason to support this bill. It would be financed by repealing the employee retention tax credit, a program that has been plagued by fraud during the COVID-19 pandemic. Over 40 conservative and free-market organizations have urged lawmakers to pass this pro-growth legislation, while far-left Democrats like Sen. Elizabeth Warren and Rep. Rosa DeLauro have strongly opposed it.
If GOP senators want to preserve their signature economic success of the past decade, they must come together and support this tax reform. The opportunity to expand on the Trump tax cuts and secure their permanency is too important to overlook. By doing so, they not only protect American job growth and competitiveness but also strengthen their position in future policy discussions. The fate of the Trump tax cuts lies in their hands, and they must seize this opportunity to ensure a prosperous future for the American economy.
