American taxpayers have a lot riding on the "big, beautiful bill" Congress is working on. Part of the bill is a permanent extension of the 2017 Tax Cuts and Jobs Act (TCJA) a.k.a. the "Trump tax cuts." Those cuts are set to expire at the end of this year, and if they do Americans will be in for a rude awakening come 2026. The National Taxpayers Union estimates the end of the tax cuts would mean an average tax increase of $3,016 per filer in Texas. The NTU further predicts total individual and business taxes would rise by $500 billion and U.S. GDP would be reduced by 1.1% if the TCJA expires.
Americans have grown accustomed to the TCJA in the eight years since it passed, and letting it end (as Democrats want to do) would be a shock to taxpayers. "Your per-child tax credit would fall in half, your standard deduction would fall in half, you'd have to keep all those papers that you don't have to keep now in order to do your taxes, and every American would see their marginal tax rates go up significantly...if this tax bill is not continued," says Grover Norquist, president of Americans for Tax Reform.
But it's not just existing tax cuts that are on the line. The 'big, beautiful bill' also includes several new tax cuts and benefits. "It's going to reduce the taxation from tips, the taxation of income from overtime, and from social security," says Norquist. "You'll see increases in the standard deduction and the per-child tax credit, and new expensing for new businesses."
Republicans in the House and Senate are still debating the details of the overall bill, but Norquist believes ultimately they will extend the TCJA and pass the new tax cuts. "The consensus is keeping tax rates low for everyone," he tells KTRH. "Nobody will see their tax rates go up."
"It will pass, and it will pass before July 4th," he continues. "And that will really help the economy a great deal."
Photo: Moment RF