Tax Cuts and Jobs Act of 2017; permanent extension; express support
Impact
The resolution points out that various provisions of the Tax Cuts and Jobs Act, including reductions to personal tax rates and an increased standard deduction, are set to expire after December 31, 2025. If these provisions are allowed to expire, it could lead to considerable tax increases for many Americans and potentially hinder economic recovery and growth. The bill asserts that maintaining the current tax structure aids in preserving budget surpluses at the state level, reinforcing the argument for making the tax cuts permanent.
Summary
House Resolution 30 expresses support for the permanent extension of the Tax Cuts and Jobs Act of 2017. The resolution highlights the positive economic impacts that the 2017 tax cuts had prior to the COVID-19 pandemic, which included increased job opportunities, lower unemployment rates, and enhanced business investments. The bill emphasizes that the tax cuts resulted in significant tax relief for millions of Americans, particularly benefiting middle and working class taxpayers. It suggests that these tax cuts should not only be maintained but also made permanent to continue fostering economic expansion.
Contention
Notably, the resolution raises concerns regarding the proposed expiration of the $10,000 cap on the state and local tax (SALT) deduction. Its removal could incentivize states to increase taxes and spending, countering the intended economic benefits from the tax cuts. Supporters of the bill argue that making the tax cuts permanent is essential for maintaining competitiveness and economic stability, while opponents may fear the long-term implications of such cuts on tax equity and public service funding.