When Republican lawmakers meet with small businesses in their districts over the Christmas break, they'll probably hear the most important message. It says, “Pass tax cuts now.” According to Job Creators Network new national pollsmall businesses support extending the 2017 Tax Cuts and Jobs Act, which took effect in 2018 and expires next year, by a 5-1 margin.
These tax breaks are a lifeline for small businesses across the country, which have grappled with four years of challenges, from onerous COVID-19 obligations to historic inflation and burdensome labor and environmental regulations. . Among other things, small businesses are allowed to write off 20 percent of their income and accelerate spending.
One of the major obstacles to quickly extending these tax breaks and giving small businesses the certainty they deserve is the government's insistence. some republican members The tax law is revenue neutral.
“We won't get tax cuts next year unless there are significant spending cuts that reduce the deficit.”said Rep. Chip Roy (R-Texas).which claims to be “the hill I'll die on.” House Budget Committee Chairwoman Jody Arrington (R-Texas) also said tax cuts should be revenue-neutral.
Democrats and activist groups are parroting statements from the Congressional Budget Office in hopes that the fiscal issue will block tax cuts. estimate The extension would cost about $4.6 trillion.
But we've seen this movie before. The Congressional Budget Office also argued that the original Tax Cuts and Jobs Act would have cost too much. Approximately $2 trillion. What happened in reality? Federal tax revenues (not including customs duties), adjusted for inflation, are: has grown significantly After that has passed. The tax collection amount for fiscal year 2024 is 5 trillion dollars more expensive That was higher than the CBO expected without the tax cuts. Oops!
Official cost estimates were wrong then and are wrong now. Budget tabulators who have never worked on Main Street are unable to explain how tax cuts boost economic growth, employment, and wages, which in turn increases tax revenue. as President John F. Kennedy said: In 1963, he said: “Tax cuts are the best means available to us for raising revenue.''
The cause of the deficit is not tax cuts, but reckless spending. Since 2017, federal spending has From $4 trillion to nearly $7 trillion per year This is due to reckless and inflationary spending by Speaker Nancy Pelosi (D-Calif.) and the Biden administration.
The nation can eliminate the deficit simply by restoring spending to pre-COVID-19 standards. That's why Republicans are right to call for spending cuts, but wrong to insist that the cost of tax cuts must be equal to CBO's erroneous predictions.
repeals clean energy provisions of the Inflation Control Act, including a regressive $7,500 payment for electric vehicle buyers; $622 billion in savings. Republicans can fight back too. Over $100 billion Unspent COVID-19 relief funds.
These savings cover: $684 billion CBO estimates that expanding the 20% small business deduction would be costly. In fact, these funds would create room for Main Street to further expand this small business deduction to maintain tax parity and competitiveness with corporations.
Ending the expansion of Obamacare subsidies for the middle class earning more than 400 percent of the federal poverty line would save money.$335 billionaccording to the CBO. Popular fair labor requirements for welfare would save yet another worker$135 billion.
These reductions will essentially be used to extend critical immediate spending on capital expenditures and research and development, which are expected to be costly. $378 billion and $153 billionrespectively.
The Ministry of Government Efficiency will undoubtedly come up with innovative ways to pay for other important provisions of the tax bill. The bloated military-industrial complex should not be ignored.
Will these spending cuts fully cover the cost of extending the tax cuts? Probably not. But history and logic show that tax cuts don't have to go that far to be revenue neutral.
Most importantly, the tax cuts will reward small businesses that have weathered the tough times of the Biden administration, encourage new entrepreneurs to grow the economy and realize the American Dream, and revitalize blighted communities across the country. It is to become
Alfredo Ortiz is CEO of Job Creators Network, author of The Real Race Revolutionaries, and co-host of the podcast Main Street Matters.
