State Lawmakers Urge Congress to Permanently Extend 2017 Federal Tax Reform
Americans face massive tax increases with lower individual rates expiring at the end of 2025
Arlington, Va. – Today, members of the American Legislative Exchange Council (ALEC) approved a new model resolution urging Congress to permanently extend the Tax Cuts and Jobs Act (TCJA), which President Donald Trump signed into law in 2017. Twenty-three provisions of the TCJA directly relating to individual income taxes will expire at the end of 2025.
More than 100 million American taxpayers from all income tax groups enjoyed real tax relief under the TCJA. The TCJA also capped the state and local tax deduction (SALT) at $10,000. Returning to an unlimited SALT deduction would incentivize many states to once again implement higher taxes and spend at higher levels.
“State lawmakers, those closest to the people, know best how these historic tax cuts have benefited their hardworking constituents,” said ALEC CEO Lisa B. Nelson. “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.”
WHEREAS, prior to government-mandated economic shutdowns during the COVID-19 pandemic, the Tax Cuts and Jobs Act of 2017 spurred steady economic expansion and allowed the spirit of entrepreneurship to flourish, while creating new jobs and opportunities for millions of Americans;
WHEREAS, the tax cuts of 2017 resulted in a $1.5 trillion net tax cut, and were 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;
“Allowing this essential tax relief to expire would undoubtedly harm hardworking American taxpayers, slow the growth of the U.S. economy, and further harm America’s ability to compete,” said ALEC Chief Economist and Executive Vice President of Policy Jonathan Williams.
In ALEC’s 49-year history, the organization has adopted more than 1000 model policies.
A USA Today report found that between 2010 and 2018, ALEC model bills were introduced 2,900 times across all 50 states and in Congress, and had a 21% passage rate.
The American Legislative Exchange Council is the largest nonpartisan, voluntary membership organization of state legislators in the United States. The Council is governed by state legislators who comprise the Board of Directors and is advised by the Private Enterprise Advisory Council, a group of private, foundation and think tank members. For more information about the American Legislative Exchange Council, please visit: www.alec.org.