| Hello John, Everyone in Washington these days is talking about “affordability,” and it’s not hard to understand why. Even as inflation has been reduced from a high of 9.1% to 3.0%, Americans are still recovering from Joe Biden’s reckless inflation policies. Countless American families are reeling from a new normal. The 22% price hikes from the Biden years are now the baseline. For most Americans, it is getting harder to make ends meet. There are essentially two ways Washington can address the affordability crisis. - One, we can pursue policies that put more money into people’s pockets, so they can afford higher prices.
- Two, we can pursue policies that lower the prices of goods and services.
- A combination of both would be the ideal solution.
The good news is that help is on the way: The Working Families Tax Cuts bill signed into law by the president in July will go a long way toward addressing many of our affordability challenges. The bill does not go into effect until January, but when it does, it will have a huge impact. First and foremost, the new tax law prevents the largest tax hike in American history from taking place. If you recall, the Trump tax cut law from his first term — the Tax Cuts and Jobs Act — was set to expire at the end of this year. The TCJA was maybe the best tax legislation of the past 100 years. And despite the rhetoric from the Left, they were NOT tax cuts for the rich. Here are a few ways they benefitted everyone: - They made it easier to save and invest, which leads to greater productivity and economic growth. And that is precisely what happened in the wake of the TCJA: The economy took off and wages increased dramatically.
- Letting the Trump tax cuts expire would have resulted in American families paying $1,500 to $1,700 more in taxes every year, starting on January 1, 2026.
- Not only does the Working Families Tax Cuts law preserve the TCJA’s tax cuts, but it added more cuts directly targeted at the middle class.
The new tax law is also a huge win for small businesses. - It makes full expensing permanent for most categories of business investment, which is especially beneficial to the mom-and-pop businesses that serve as the backbone of America’s economy.
- Furthermore, mom-and-pop businesses are usually organized so that the owners report their business income on their personal tax returns and pay taxes based on individual tax rates. Letting the 2017 tax cuts expire would have raised the individual tax rates that most small-business owners pay, leaving them with less to reinvest in their businesses or hire more workers.
Here’s the bottom line: As with the expensing provisions, by extending the 2017 personal tax rates and making them permanent, mom-and-pop businesses are better able to make business decisions now that they know the tax code isn’t going to change every year based on the whims of Washington. Stay tuned for additional updates on how the Working Families Tax Cuts law will make life more affordable for all Americans. In the meantime, lawmakers need to hear from you — whether they supported the bill or not. Send your message today to show them that the American people are paying attention — and expect them to stand strong for efforts to clean up waste, fraud, and abuse in government! | 
