U.S. Rep. Vern Buchanan (R-FL) on Sept. 20 sponsored legislation that would make certain provisions permanent in the Tax Cuts and Jobs Act (TCJA) of 2017 that directly impact individuals, families, and small businesses. Without congressional action, 23 provisions in the TCJA are set to expire after 2025.
“In 2017, Republicans delivered the most comprehensive overhaul of the U.S. tax code in more than three decades and achieved historic economic growth,” Rep. Buchanan said. “With Americans continuing to suffer under the weight of record-high inflation and an uncertain economic future, we need to provide some much-needed relief and certainty to hardworking families and ensure these tax cuts do not expire.”
Rep. Buchanan introduced the TCJA Permanency Act, H.R. 8913, with four original cosponsors, including U.S. Rep. Dave Joyce (R-OH). If enacted, the bill would permanently lower tax rates for individuals and families, according to a bill summary provided by Rep. Buchanan’s staff.
H.R. 8913 also would preserve the 20 percent deduction for small businesses; maintain the higher standard deduction to increase the amount of tax-free income; lock in the doubled child tax credit; and permanently simplify the tax filing process, the summary says.
The measure also includes several updates to a previous iteration of the TCJA, such as technical fixes and expanded eligible uses of 529 savings plans that help parents and students, the summary states.
The Tax Foundation reports that making TCJA’s individual tax provisions permanent will lead to a 2.2 percent higher GDP in the long-term, according to the congressman’s office.
“The results of TCJA were nothing short of stunning, but not surprising,” said Rep. Buchanan. “As someone who spent 30 years doing business, I know from experience that making our tax code more competitive means greater prosperity for small businesses and families.”
The U.S. House Ways and Means Committee is now considering H.R. 8913.