WASHINGTON – Congressman Vern Buchanan today participated in a Ways and Means Republican roundtable focused on extending key elements of the Tax Cuts and Jobs Act (TCJA).
Last month, Buchanan introduced the TCJA Permanency Act, legislation to make permanent 23 different tax cuts for individuals and small businesses originally enacted as part of the 2017 Republican tax law.
“Republicans delivered the most comprehensive overhaul of the U.S. tax code in more than three decades and helped our country achieve historic economic growth. We delivered significant tax relief for low and middle-income families and small businesses across all income levels,” said Buchanan during the roundtable. “Today, as we look forward to the strong probability of an upcoming recession, there is new urgency to preserve these pro-growth policies.”
The TCJA Permanency Act has garnered the support of several of the nation’s leading conservative economic policy organizations and has attracted 70 cosponsors since introduction.
CEO of Reynolds Services, Inc., John Frangakis, served as the witness for today’s roundtable and said, “We are very concerned about the effects of raising taxes, or even letting provisions of this act dwindle or expire could have, not only our market, but on the economy in general.”
Expanding on TCJA’s benefits for small businesses, Frangakis also said, “From my perspective some of the greatest benefits of this legislation ... are the effects it has on the growth of jobs, enhancing productivity and increasing paychecks for our employees.”
Ways and Means Republican Leader Kevin Brady has endorsed Buchanan’s bill, saying, “Making the historic Tax Cuts and Jobs Act permanent will lock in low taxes for families and small businesses struggling with record inflation, and create certainty for the pro-growth provisions that leapfrogged America to the most competitive economy in the world.”
Initial estimates from the nonpartisan Tax Foundation show that a single mother of two earning $52,000 would face a $1,500 tax hike in 2026. For a married couple with two children and $85,000 in income, the additional tax bill would be over $1,700 per year.
Buchanan’s full remarks as prepared are below:
“Thank you, Leader Brady and Mr. Kelly, for hosting this important roundtable today. I was pleased to be able to work so closely with you and many of our colleagues here today to help pass the Tax Cuts and Jobs Act back in 2017.
“In doing so, Republicans delivered the most comprehensive overhaul of the U.S. tax code in more than three decades and helped our country achieve historic economic growth. We delivered significant tax relief for low and middle-income families and small businesses across all income levels.
“Today, as we look forward to the strong probability of an upcoming recession, there is new urgency to preserve these pro-growth policies. At the end of this year, 100 percent expensing will begin to phase out—a huge hit to industries like farming and manufacturing at a time when they need capital the most. I’d like to highlight Rep. Jodey Arrington’s ALIGN Act, which would make expensing permanent.
“Further, without Congressional action, 23 different provisions of TCJA are set to expire after 2025, imposing significant tax hikes on middle-income families and Main Street businesses across the country
“In fact, according to initial estimates from the nonpartisan Tax Foundation, a single mother of two earning $52,000 would face a $1,500 tax hike and a married couple with two children and $85,000 in income would face a $1,700 tax hike in 2026 if we allowed these important provisions to expire.
“That’s income that isn’t going towards everyday staples like food, diapers, or school supplies.
“That’s why I introduced the TCJA Permanency Act to make the individual and small business tax cuts permanent.
“I was pleased to be joined by Leader Brady, RSC Chairman Jim Banks, Freedom Caucus Chairman Scott Perry and Republican Governance Group chairman Dave Joyce as original cosponsors, as well as over 60 of my other colleagues, including many of you here today, as cosponsors.
“I’ve also introduced the American Innovation Act to assist our entrepreneurs. This bill would quadruple the amounts small business start-ups can deduct from their tax bill, lowering the barrier-to-entry and driving capital formation.”
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