WASHINGTON – New data from the nonpartisan Tax Foundation highlights the need for the passage of Congressman Buchanan’s TCJA Permanency Act, legislation to make permanent tax cuts for individuals and small businesses originally enacted as part of the Tax Cuts and Jobs Act (TCJA) of 2017.
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.
“This startling new information from the Tax Foundation makes crystal clear the need to permanently lock in these low tax rates,” said Buchanan. “As American families and businesses across the country are struggling to make ends meet in Biden’s cruel economy, the last thing they need is a looming tax hike.”
Earlier this month, Buchanan’s bill was endorsed by Grover Norquist’s Americans for Tax Reform. Norquist praised Buchanan’s legislation, saying “This bill makes it clear that protecting the pro-growth tax cuts passed in 2017 remains a top priority for Republicans when they take back Congress… The TCJA Permanency Act will help right the ship and get the American economy growing again.”
Without Congressional action, 23 different provisions of the 2017 Republican tax law are set to expire after 2025.
Specifically, Buchanan’s bill will:
- Permanently lower tax rates for individuals and families, allowing Americans at every income level to keep more of their hard-earned money
- Preserve
- Maintain the higher standard deduction, increasing the amount of tax-free income a middle-class family can earn
- Lock in the doubled child tax credit, further encouraging workforce participation
- Permanently simplify
The legislation also includes a number of important updates to a previous iteration of this bill, including several technical fixes and expanded eligible uses of 529 savings plans to help parents and students.
Buchanan’s bill has been endorsed by several of the nation’s leading conservative economic policy organizations and has attracted more than 40 Republican cosponsors since introduction three weeks ago.
Buchanan has led five of the six Ways and Means Subcommittees, including as Chairman of the Tax Policy Subcommittee where he oversaw the successful and smooth implementation of the largest overhaul of our tax code in more than 30 years.
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