This is why I voted to make tax cuts permanent
For many years, West Tennesseans felt the burdens of a difficult, outdated tax code. After 30 years of inaction, the House passed the Tax Cuts and Jobs Act in December 2017, bringing much-needed relief and a renewed sense of opportunity. This was an historic moment for our country.
Now, 10 months since it has been signed into law by President Trump, the Tax Cuts and Jobs Act is working and working well. Under the new tax code, businesses have had the room to thrive and workers are taking home larger paychecks.
According to Forbes, small business optimism is at its peak, reaching the highest levels in over four decades. These numbers are encouraging as we focus on the impact of tax reform on our local and state economies.
Tax reform has not just changed the trajectory of our country’s economy for the better, it has also had serious positive impacts here at home. New businesses are opening their doors, and West Tennesseans are seeing pay increases. That is real progress.
Unfortunately, some of the provisions of the Tax Cuts and Jobs Act that help individual Americans were designed to expire after in just a few short years. That’s why I voted last week for a second round of tax reform to ensure those important cuts stay put and continue good work for the American people.
The House passed three individual tax reform bills that focus on provisions to protect middle-class and small business tax cuts, promote family and retirement savings, and support the next generation of entrepreneurs.
One major provision will make permanent the 20 percent deduction for pass-throughs that are important to small businesses. This wave of tax reform will also maintain a number of family-friendly policies such as the doubled child tax credit and the paid family leave tax credit.
More money in your paycheck gives you the opportunity to save for the future, and this new wave of tax reform will expand access to new and existing savings vehicles geared toward helping families think ahead. This makes saving for college or family planning more of a reality.
We also have an aging population, and many Americans are relying solely on Social Security checks to survive. These bills put emphasis on the importance of retirement savings, while increasing access to certain vehicles that will make this possible.
Finally, these bills will help entrepreneurs get a running start in chasing the American dream by allowing new businesses to write off more of their start-up costs. These innovators are making valuable investments in our community, and we have done our part to ensure this tax reform provisions give them the best pathway to success.
All of these exciting developments mean that hardworking Americans in every corner of the country will see more money in their paychecks to spend how they choose thanks to tax reform.
It is my hope that the Senate can now pass these permanent changes and help Republicans make good on our promise to help the American people.
U.S. Rep. David Kustoff represents parts of Shelby County and West Tennessee.