I have long been an advocate for keeping more money in the pockets of individuals so they can make independent decisions about the use of their own money. I am committed to promoting an economic climate that brings about fiscal responsibility, spends tax dollars wisely, and takes steps to eliminate the deficit. — Rep Chris Jacobs (R-NY)
Despite what Rep. Jacobs suggests, cutting taxes without reducing benefits is fiscally irresponsible. Many government programs are vital to those Rep. Jacobs purports to help. Politicians seldom explain what programs and benefits they would cut. Rep. Jacobs writes:
As you may know, in 2017, Congress passed and President Trump signed the Tax Cuts and Jobs Act, providing massive tax cuts for everyday Americans and small businesses. However, many of the important provisions in this legislation are set to expire in 2025.
I don’t know that. I haven’t experienced a “massive tax cut.” Here is some of what Republicans advocate:
H.R. 6658 — Protecting Family and Small Business Tax Cuts Act of 2022 — 106 cosponsors (all Republicans) including Jacobs, Katko, Reed, and Tenney.
There is no CRS Summary yet. Rep. Jacobs claims that The Protecting Family and Small Business Tax Cuts Act of 2022 (H.R. 6658) would remove the expiration date on the doubled standard deduction, the doubled child tax credit, the allowance of mortgage interest deductions up to $750,000, and the 20% deduction for small business employers. According to the House Ways & Means Committee, under these tax cuts, the average family of four making the median income of $73,000 per year saves over $2,000 per year, which is why I believe it is critical to make these tax cuts permanent.
What effect this would have on the deficit, Rep. Jacobs doesn’t say.
H.R. 1381 — Main Street Tax Certainty Act — 83 cosponsors (81 Republicans, 2 Democrats) including Garbarino, Jacobs, Katko, Stefanik, and Tenney.
CRS Summary: This bill makes permanent the tax deduction for qualified business income. (Under current law, the deduction expires after December 31, 2025.)
“Qualified business income” is defined as the net amount of qualified items of income, gain, deduction and loss with respect to any trade or business, excluding capital gains or losses, dividends, interest income, or income earned outside the U.S.
H.R. 1712 — Death Tax Repeal Act — 155 cosponsors (154 Republicans, 1 Democrat) including Garbarino, Jacobs, Katko, Stefanik, and Tenney.
CRS Summary: This bill repeals the estate and generation-skipping transfer taxes. It also makes conforming amendments related to the gift tax.
This bill would help wealthy families preserve their wealth indefinitely.