In the first House Ways and Means Committee hearing of the 119th Congress, lawmakers and witnesses underscored the urgency of extending and strengthening pro-growth tax reforms in 2025. Chairman Jason Smith (R-MO-08), committee members and expert witnesses highlighted how the 2017 Tax Cuts and Jobs Act (TCJA) led to a 20% increase in domestic investment and a more than $6,000 increase in real median household income in the first two years following tax reform. They also stressed the need to extend TCJA provisions and ensure a globally competitive tax system to drive domestic investment, job creation and economic growth across America.
Here’s what they said about strengthening 2017 tax reform:
On the need for urgency:
Chairman Jason Smith (R-MO-08): “As of today, we have only 142 legislative days before taxes will go up for every single American if Congress fails to act. One year from now, the paychecks of every working American will look a lot different as on average, their taxes will go up 22%.”
On what’s at stake for workers, businesses and manufacturers:
Rep. Greg Steube (R-FL-17): “The expiration of TCJA would result in small businesses closing, job loss and American families suffering just so the government can take more of their hard-earned money. The good news is that Congress can avoid such economic catastrophes by extending and making permanent TCJA provisions.”
Courtney Silver, President & Owner, Ketchie, Inc.: “A new study released today by the National Association of Manufacturers shows that nearly 6 million American jobs are at risk unless Congress preserves pro-manufacturing tax policies. America will also lose more than $500 billion in worker pay and more than $1 trillion in GDP. Manufacturing will bear the brunt of this economic devastation, with more than 1 million manufacturing jobs at stake.”
Michelle Gallagher, Advisor, S-Corp Association: “Without clarity, businesses and farmers are likely to delay or forego investment, which could stall economic growth and depress job creation.”
On how 2017 tax reform created opportunity for Americans:
Chairman Smith: “American workers and the economy were better off. Americans earned bigger paychecks, unemployment for every group was at historic lows, and poverty dropped to its lowest level in American history. … The economy soared, creating 5 million new jobs in the two years after the 2017 tax cuts, the economy grew a full percentage point faster than the Congressional Budget Office projected, and over 10 years, that equals $3 trillion in new revenue.”
Rep. Nicole Malliotakis (R-NY-11): “I think we as Members are very excited about this opportunity to build on the success of [TCJA]. It created millions of jobs, it lifted middle class wages, it brought unemployment down to record lows for African Americans, for Hispanics. It did great things for women entrepreneurs. We’re really looking at it being not only extended and made permanent but also adding some additional provisions to make it stronger.”
Business Roundtable strongly supports efforts to extend and strengthen TCJA. For more information on our top tax priorities, click here.