Making the 2017 Federal Tax Cuts Permanent
State legislators: Will you sign the ALEC letter to highlight the importance of extending the Tax Cuts and Jobs Act of 2017?
We are now a quarter of the way to 2025, which means the clock is ticking on extension of the Tax Cuts and Jobs Act (TCJA) of 2017. This week, we are urging legislators to send a clear message from the states to Congress by signing the new ALEC letter to Highlight the Benefits of Permanently Extending the Tax Cuts and Jobs Act of 2017.
If Congress fails to act, 23 provisions of the 2017 tax cuts directly relating to individual income taxes, such as the reductions in personal income tax rates, the near doubling of the standard deduction, and the substantial reduction of the hated Alternative Minimum Tax (AMT) will expire at the end of 2025. This would result in a massive tax increase on hardworking American taxpayers, a significant decline in American competitiveness, fewer jobs, reduced wage income for workers, and higher prices.
Back when Congress was considering tax cuts in 2017, ALEC Chief Economist and Executive Vice President of Policy Jonathan Williams provided written testimony to the U.S. House of Representatives Committee on Ways and Means. His testimony detailed the benefits of using tax reform to create a more competitive, pro-growth economy.
These benefits soon became a reality. TCJA resulted in a $1.5 trillion net tax cut, followed by historically low unemployment rates, an increase in business investment, and a $6,000 increase in real median household income over two years – which included scores of raises and bonuses for workers immediately after the 2017 tax cuts were adopted.
ALEC highlighted reasons to be thankful for the “first comprehensive tax reform in 31 long years” and the decrease in tax burdens for 100 million Americans. We also pointed out that TCJA “rightfully limited the amount of money taxpayers could claim under the ‘state and local tax (SALT) deduction’ to $10,000 annually. Prior to this important reform, the federal tax code subsidized high-tax states by allowing unlimited state and local tax deductions.”
ALEC members approved the Resolution Urging Congress to Permanently Extend the Tax Cuts and Jobs Act of 2017, which explains how TCJA spurred steady economic expansion and allowed the spirit of entrepreneurship to flourish. Similar resolutions sponsored by ALEC members were approved by the Arizona Senate and the Michigan House.
“State lawmakers, those closest to the people, know best how these historic tax cuts have benefited their hardworking constituents. It is critical that states send a clear message to Congress that federal tax rates must remain low in order for small businesses and families to succeed.”
Last week, ALEC National Chair, Kansas Senate President Ty Masterson was the first to sign this new letter to Highlight the Benefits of Permanently Extending the Tax Cuts and Jobs Act of 2017. Now is the time to amplify the voice of the states and send a clear message to Washington.
State legislators: Will you join Senate President Masterson and others across the nation by signing the ALEC letter to highlight the importance of extending the Tax Cuts and Jobs Act of 2017?