Conservatives have always rejected on principle the progressive argument that tax cuts inflate the deficit. Returning dollars back to families and businesses isn’t “spending” — it’s less taxation. And less taxation typically comes with the benefit of unleashing a stronger economy that benefits everyone.
Most Republicans understand this. That’s why the GOP-led House passed a bipartisan bill in resounding fashion earlier this year to extend some of the best provisions in Donald Trump’s 2017 tax law.
Some Senate Republicans, however, are jeopardizing this much-needed relief for families.
In an op-ed for the Wall Street Journal last month, Sen. Thom Tillis (R-NC) lamented the idea of extending some of Trump’s tax cuts, calling it “fiscally irresponsible and unsustainable.”
The main target of his ire is the proposed child tax credit extension, which he refers to as a “full-fledged welfare program.” Tillis would prefer to impose a number of restrictions to prevent poor, working-class families, who often struggle to maintain reliable employment in President Joe Biden’s economy through no fault of their own, from claiming the credit.
Maybe that argument would hold water coming from a Freedom Caucus libertarian who wears one of Rep. Thomas Massie’s (R-KY) debt clock pins as a fashion statement. But Tillis is no deficit hawk. Last month, he joined the Democrats to support President Joe Biden’s $95 billion Ukraine supplemental legislation. And while Tillis is extremely concerned about families potentially gaming Uncle Sam for pennies on the dollar, he has not sought similar limits on how Ukraine President Volodymyr Zelensky spends his considerably larger welfare check.
Unfortunately, Tillis is not alone in his opposition. And that’s a problem because Tax Day is less than 40 days away. If this bill isn’t signed into law before April 15, families and businesses could lose out on some of these critical tax benefits next year.
The House Ways and Means Committee, led by Chairman Jason Smith (R-MO), did its due diligence while crafting the Tax Relief for American Families and Workers Act. The committee worked for months to put together a bill that built on Trump’s tax legacy while appealing across party lines. It was such a well-crafted bill that it earned the support of 357 members of Congress, ranging from members in the House Freedom Caucus to the Congressional Progressive Caucus, two sides that rarely see eye to eye.
If passed, families would benefit not only from maintaining the current child tax credit amount of $2,000 per child, which would be pegged to inflation, but also from enhanced refundability.
Meanwhile, businesses would benefit from the extension of key pro-growth provisions, such as restoring the immediate research and development deduction, extending the business interest cost deduction, and extending 100% bonus depreciation.
Trump’s tax reform had a tremendous effect when it was passed in 2017. Democrats coming to the table to extend some of the law’s key provisions is evidence of that. Under Trump, the economy roared – businesses enjoyed record profits, real wages increased considerably, all while inflation was kept in check.
This should go beyond partisan politics.
That’s why dozens of faith and family groups have come out strongly in support of the TRAFWA. In recent weeks, my organization, the American Principles Project, signed on to letters led by Students for Life and Concerned Women for America urging Senate action. In one of the letters, we note: “[T]his is not exclusively a Republican or Democrat issue, it is an issue of supporting life and the families who nurture it. We ask the Senate to take action and pass this bill to do so.”
Senate Republicans have the opportunity to send a clear message to businesses and families who have been struggling with rising costs: we’ve got your back. But if Tax Day passes and the Senate fails to deliver tax relief, Biden and the left-wing media will surely blame Republicans, and voters will understandably believe them. Let’s not play into this trap.
This is Trump’s tax legacy. This is the Republican Party’s tax victory. There’s no need to overthink this: pass the extension and guarantee families get the relief they need.
