| Hello John, In a recent Wall Street Journal poll, Americans said the two most important elements of the American Dream were being financially secure and having enough money for a comfortable retirement. After suffering through the highest inflation in 40 years caused by Joe Biden’s reckless spending (we’re all still feeling its effects), it’s not surprising that financial peace of mind would be front and center. Back in July, Congress had a choice: let taxes skyrocket for families like yours or protect working families’ chance to get ahead. They made the right call, stopping a tax hike that would have cost the average family of two $1,500 or more.
These are the working family tax cuts — and here’s what they mean for you.
The good news is that a primary focus of the working family tax cuts was delivering precisely the type of financial security that Americans crave. Let’s look at just three ways these tax cuts increase the financial security of all Americans. First — the bill’s provisions, for the most part, extended and made permanent the tax cuts enacted as part of the 2017 Tax Cuts and Jobs Act. The TCJA was the best tax legislation of the past 100 years. Its tax cuts were designed to benefit all Americans, not just by lowering their tax bill, but also by making it easier to save and invest — the keys to greater productivity, economic growth, and higher wages. It’s one of the reasons the economy boomed in the pre-Covid Trump years.
By making these provisions permanent, the tax cuts make it easier for Americans to invest for their future, buy a home, or save for a comfortable retirement. And they can do so with confidence, knowing that the tax rate they pay won’t be subject to another legislative brawl in a few years. And without an expiration date on the tax cuts, progressive politicians won’t be able to hold expiring tax cuts hostage to advance their tax-and-spend priorities. Second — the working family tax cuts improve financial security for small business owners. The full-expensing provisions of the tax cut bill allow small businesses to immediately deduct the full cost when they next file their taxes. Full expensing is designed to encourage business investment, stimulate economic growth, and simplify tax compliance, all of which put more money into the pockets of small business owners. Furthermore, mom-and-pop businesses are usually organized so that their owners report their business income on their personal tax returns and pay taxes at individual rates. Letting the 2017 tax cuts expire would have raised the individual tax rates that most small business owners pay, leaving them with less to reinvest in their businesses or hire more workers. As with the expensing provisions, by extending the 2017 personal tax rates and making them permanent, mom-and-pop businesses are better able to make business decisions knowing the tax code isn’t going to change every year based on Washington’s whims. Third — the working family tax cuts make important adjustments to the Medicaid program that ensure it is focused on the most vulnerable populations — pregnant women, children, the elderly, and the disabled. Recall that when Obamacare expanded Medicaid coverage to everyone who makes less than 138% of the poverty level, 17 million new enrollees were added to an already strained program. This expansion population consists mostly of able-bodied, working-age adults without children. Obamacare gives states $9 in federal funding for every $1 they spend on this new group of enrollees. What do states get for every dollar they spend on Medicaid’s traditional population of pregnant women, children, the elderly, and the disabled? Just $1.33. This bias in favor of able-bodied adults has increased costs and made it harder for expectant mothers, children, and the disabled to access care. The working family tax cuts begin addressing these abuses and will make it easier for the most vulnerable Medicaid population to get the care they need, giving them peace of mind. As you can see, the working family tax cuts will help address some of the financial angst Americans are feeling. Stay tuned for additional updates on how the working family tax cuts are making a difference for the better. In the meantime, lawmakers need to hear from you — whether they supported the tax cuts bill or opposed it. Send your message today to show them that the American people are paying attention — and expect them to stand strong for efforts to enhance the financial security of every American. | 
