13th District Congressman Rodney Davis has introduced legislation to make the 2017 Trump Tax Cuts permanent.
Davis first introduced the legislation in September 2018, and it quickly passed the House but stalled in the Senate.
The original tax reform bill passed by the House in November 2017 made the individual rates and deductions permanent, but eventually were made temporary by the Senate to abide by budget reconciliation rules. Currently, the individual rate cuts will expire in 2025. Davis’ current legislation would make the individual rate cuts permanent.
Davis says the IRS has acknowledged that the tax cuts help the middle class: “We’ve seen the IRS finally come around and say what [House Republicans] have been saying that working with President Trump, helping craft and pass the Trump Tax Cut bill has put more money in the pockets of middle class families than any other income level. Now, the problem with the Trump Tax Cut Bill – the Democrats in the Senate would not allow the individual tax rates to be permanent. They are going to expire. We need to fix that, and that’s exactly what my bill does. The tax savings that families are enjoying now do not need to go away. The Democrats were okay with corporate tax rates being permanent but not individual tax rates. My bill would help families, help small businesses who file as pass-through companies and not through the corporate tax code – that’s the reason why we need to get this done.”
Davis’ current bill would permanently double the standard deduction to $12,950 for single filers and $25,900 for joint filers; double the Child Tax Credit to $2,000 with up to $1,400 refundable; retain certain popular tax deductions; and keep a 20% tax deduction for certain small businesses.
The Protecting Family & Small Business Tax Cuts Act of 2022 was referred to the House Ways & Means Committee this past Wednesday.