The Chairman of the Republican Study Committee (RSC) warns that American families could face a significant tax increase next year if Republicans fail to pass a budget reconciliation bill extending President Trump’s 2017 Tax Cuts and Jobs Act. If Democrats allow the tax cuts to expire, over 40 million families and 26 million small businesses could see a 22% tax increase. The RSC is advocating to make these tax cuts permanent to boost job creation, stimulate the economy, and protect family budgets from excessive taxation.
The RSC, which has over 175 members, serves as the House GOP’s conservative think tank and is working to extend the Tax Cuts and Jobs Act and implement other tax policy initiatives proposed by Trump. These efforts aim to make the U.S. a favorable destination for investment and business growth while providing financial security for families and companies. Tax reform is a key component of reconciliation, a legislative tool that enables major fiscal and budgetary changes by lowering the Senate threshold for passing bills.
The House Republicans have passed a framework to align with the Senate’s reconciliation bill, allowing committees to develop policy provisions. However, passing a bill in both chambers remains challenging, especially with narrow majorities in the House and Senate. Extending the tax cuts alone would reduce federal revenues by $4.5 trillion, prompting calls for significant spending cuts to offset the revenue loss. The RSC steering group has advocated for deficit-neutral reconciliation legislation while acknowledging the political and economic consequences of failing to extend Trump’s tax cuts.
There are concerns about the impact on families if the tax cuts expire, with estimates suggesting that the average household could lose around $1,000 if the cuts are not extended. Additionally, continued tariffs could result in an average consumer loss of $3,800 per household. The House Ways and Means Committee has also warned about the potential tax hike if the Tax Cuts and Jobs Act is allowed to lapse. Swift action is urged to provide relief to American taxpayers and ensure economic stability.
In addition to extending the tax cuts, President Trump has proposed eliminating taxes on tipped and overtime wages, as well as on Social Security benefits for retirees. These measures are intended to stimulate economic growth and provide financial security for workers and retirees. Republicans are committed to slashing federal regulations and bureaucracy to support economic expansion and job creation. The focus on tax policy and fiscal reforms is part of a broader effort to enhance the country’s competitiveness and support American families and businesses.
