One of the greatest achievements of the Trump administration and the Republican-controlled Congress during the beginning of President Trump’s term was passing the Tax Cuts and Jobs Act (TCJA) in January 2018. These Trump Tax Cuts, which did not get a single Democratic vote, were the largest overhaul of the tax code in roughly 30 years.
This overhaul did great things for virtually all taxpaying Americans, families and business owners. First, it lowered the tax rates for nearly all earners and for business owners. It also ended the Obamacare individual mandate, which imposed tax penalties on anyone who did not get health insurance. Finally, it raised the child tax credit, which is huge for young and/or lower-income families.
Unfortunately, many of these benefits and tax cuts will expire at the end of 2025 if Congress does not act before then. The possible expiration of these tax cuts and benefits would have major consequences for so many Alabamians. Just in my congressional district, the average person will see a 24% tax hike if the Trump Tax Cuts expire at the end of 2025. A family of 4 earning $61,856 (the median income in Alabama) would pay an extra $1,142 a year in taxes in this scenario. At a time of record inflation and increasing cost of living, this would be far too big of a burden for the average person or family.
The impact would go far beyond the higher taxes on earnings. In fact, nearly 83,000 families in Alabama’s First Congressional District would see their Child Tax Credit cut in half if the Trump Tax Cuts expire. More than 38,000 small businesses in our district would be hit with a tax hike, and close to 2,500 family farms would have their Death Tax Exemption slashed in half.
These are just a few of the highlights of how important the Trump Tax Cuts are to virtually all of us, and they are yet another reason we need President Trump back in the White House and Republican control of both the House and Senate. As we saw in 2018, not a single Democrat voted for the Trump Tax Cuts, so we certainly can’t count on them to renew these if they are in control next year.
As the Nov. 5 election rapidly approaches, I urge you to vote and make sure everyone you know gets out and votes as well. There is so much at stake in this election, and we simply cannot afford another four years of decline like we’ve seen under the Biden-Harris administration.
Jerry Carl represents Alabama’s First Congressional District. He lives in Mobile with his wife Tina.
The views and opinions expressed here are those of the author and do not necessarily reflect the policy or position of 1819 News. To comment, please send an email with your name and contact information to Commentary@1819News.com.
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