Republicans are set to fulfill a promise we made to the American people: permanently extending the 2017 tax cuts we established under the first Trump administration. That landmark legislation simplified the tax code, making it fairer and smarter. We lowered taxes for Americans and small businesses. Families enjoyed increased take-home pay, and job creators could invest more capital into their enterprises. These changes set the American economy on a path of growth and innovation.
Preventing Higher Taxes
However, the clock has been ticking on this historic achievement. Many of the tax code changes are set to expire automatically at the end of 2025. Republicans are working to prevent that scenario, which would cause tax rates to snap back to their pre-2017 levels.
If the cuts do expire, the consequences would be swift and severe. Next year, Americans’ taxes would increase by more than $4 trillion dollars – the largest hike in our history. On Tax Day 2026, the average Mississippi family would owe Uncle Sam $1,570 more. Many families would see their standard deduction and child tax credits diminish by 50 percent. Nearly 140,000 of our small businesses would lose their 20 percent deduction. More than 30,000 of Mississippi’s family-owned farms would risk their death tax exemption being slashed in half. These are not abstract numbers. They represent jobs, paychecks, and livelihoods.
U.S. Sen. Roger Wicker (R-Miss.)
Republican Plan to Extend Tax Cuts
This summer, Congress is planning a vote to avoid this unnecessary tax hike and to restore certainty to families and businesses. The U.S. Senate Finance Committee recently unveiled the details of its plan to extend – and expand – the 2017 tax cuts.
Under this legislation, families would keep the current $2,000 per-child tax credit. In 2017, we raised the standard deduction for individuals, heads of household, and joint filers. This year’s bill would go further, again increasing that deduction for all three groups. The plan also increases the credit employers can use for childcare assistance.
The bill would make permanent several provisions that boost business investment in the United States. Small businesses could continue deducting 20 percent of their qualified business income on tax forms. They would still be able to expense all their research and development (R&D) initiatives, as well as their equipment purchases. In the Senate, I specifically fought for the provisions related to small business income deduction and R&D expensing. Both measures would support the economy by empowering job creators to invest in their businesses – raising wages, attracting companies, and increasing innovation.
The 2017 tax cuts were a historic boost for American industry. If passed, this year’s legislation will build on that achievement. Congress will continue deliberating the tax bill in the coming days. I am hopeful that we will soon approve the text and send it to President Trump for his signature. If we make these tax laws permanent, we will send a strong economic signal to the world, encouraging companies to make long-term investments in American workers, plants, and technology.
This “Wicker Report” column is provided by U.S. Sen. Roger Wicker (R-Miss.), who is solely responsible for its content.
