Tax cuts are on the line, and American families will pay the price

OPINION:

Tax cuts: two words that excite Americans across the board. Now, add one more word — Trump — and nearly half the country suddenly opposes them. As a House Ways and Means Committee member, I’ve heard all the arguments. Let’s break it down.

In 2017, President Trump signed the Tax Cuts and Jobs Act, the most significant tax reform in a generation. Opponents of extending the Trump tax cuts, particularly Democrats whose approval ratings are floundering at just 29%, have spread the false narrative that the Trump tax cuts benefited only the wealthy. That’s simply not true. Let’s look at the facts.

The Trump tax cuts provided a tax cut to most Americans, including 91% of middle-class taxpayers. The top 10% now pay more than 75% of all income taxes, while the bottom half of earners keep more of their money than ever before.

They also delivered simplicity. In my district, 94% of taxpayers take the standard deduction now, up from 80% before the Trump tax cuts. That means no more scrambling to find receipts. Taxpayers can instead take the standard deduction, a fixed amount set by the government, streamlining the filing process.

The Trump tax cuts are pro-worker and pro-family. After Mr. Trump signed the tax cuts into law, companies announced hourly wage increases and bonuses. Rep. Nancy Pelosi dismissed these benefits as “crumbs,” but for hardworking Hoosiers, that’s real money. The cuts also doubled the child tax credit, ensuring parents can afford the ever-rising cost of raising a family.

Finally, the Trump tax cuts delivered pro-growth business tax reform. It cut taxes for small businesses and spurred capital investments. Under President Obama, we saw a wave of companies moving their headquarters abroad through corporate inversions. Since the Trump tax cuts, there have been no inversions. Instead, American companies have become buyers of foreign competitors.

Here’s the problem: These tax cuts will expire this year without congressional action.

Letting them expire would hit hardworking families the hardest. A household of four earning around $80,000 would face approximately $1,700 in higher taxes. In my district, the child tax credit would be cut in half for 87,000 parents. This is money that people rely on, not mere “crumbs.”

This isn’t about partisan politics. It’s about economic reality. American families need relief, not more financial strain. Extending the Trump tax cuts isn’t just good policy; it’s essential for protecting the financial well-being of millions of hardworking Americans.

• Rep. Rudy Yakym, a Republican representing Indiana’s 2nd Congressional District, is a member of the House Ways and Means Committee.