Women benefited greatly from the 2017 Tax Cuts and Employment Act. And if the important provisions of this bill are not restored and reformed by policymakers this year, they will lose a lot.
For one thing, the unemployment rate for women fell to nearly 65 years' low in 2018 following the passage of the tax bill. The Trump administration pointed out. This was not a coincidence.
In 2016, the United States had the highest corporate income tax rate (total of federal, state and local taxes) among developed countries. According to America First Policy Institute Report by Michael Folkender, candidate for Deputy Treasury Secretary of the Year for President Trump. Trump's tax bill will reduce this rate to something much more competitive, creating new jobs for employers and providing employment and performance bonuses to workers, including many women provided.
Federal Reserve data is shown At the beginning of the first Trump White House, the labor force participation rate (ages 25-54) for Prime Age workers was 81.5%. By the time Covid was hit, its rating had risen to 83.1%. But it has not yet recovered to pre-pandemic levels. If the tax clauses are not updated, it will definitely get worse.
The 2017 tax bill was launched in the wake of workers being allowed to bring more salaries home; US Census Bureau data released in 2020 Women also showed that they had experienced record-breaking income. The poverty rate fell to a record low in 2019, with 4.2 million Americans freed from poverty that year. This is the biggest decline in poverty since 1966. position.
Under the 2017 tax reform, single women (and men) saw a guaranteed personal tax credit rise by $15,300, but the Tax Law Writer's Path and Means Committee Report If the tax bill is not updated, it is expected to fall to just $8,300. Married women saw the family's guaranteed personal tax credit rise to $30,600. This will crater to just $16,600 without bill updates.
The committee also notes that four families of $80,610 (median US income) will see a $1,695 tax increase if the 2017 tax bill expires. This is about nine weeks of groceries for a typical American family. After the bill passed, mothers were eligible for $2,000 per child tax credit. Without reform, this would drop to $1,000 per child.
Women are extremely entrepreneurs, women own more than 12 million companies, employ over 10.7 million workers, donate $2.1 trillion in sales, According to the US Small Business Administration. Unfortunately, if the 199A Small Business Deduction under the Tax Act expires, SMEs will face a tax rate of 43.4%.
National Federation of Independent Businesses Over 90% of all US companies report being constructed as “pass-through.” This means that it is taxed at an individual tax rate rather than a company's 21% tax rate. Probably a significant proportion of the country 12 million This is how women-owned businesses are structured. The Tax Reductions and Employment Act provided a deduction of up to 20% of entrepreneurs' business income to offset the difference in income tax rates between businesses and individuals.
“The new deductions are generally designed to help these employers respond to the key corporate income tax reductions offered by Trump Tax Act, Ernst & Young Tax experts. It was reported in November.
“Innovation and economic dynamism are most realized when a startup can challenge an incumbent company with new products, services and locations,” says Faulkender. “A rise in tax rates on small and medium-sized businesses' income will make it even more advantageous.”
In other words, women running small businesses face greater headwinds (having more resources) to absorb the higher tax rates that are expected to occur at individual tax rate spikes.
National Voting for Independent Business Members 91% of small business owners “showed that the 2017 tax law would help to permanently extend expiration provisions such as small business deductions.” Organizational investigation Additionally, “over 81% believe that small and medium-sized enterprise deductions are important for businesses.”
Without tax reform, businesses will pass higher costs to their customers to absorb tax hikes. Women already deal with inflation costs of 20% after four years of bidenomics. No further reductions in new economic sabotage and spike costs are needed.
The good news is that Congressional leaders say they are committed to updating the strong provisions of the 2017 tax bill. The role of voters is to hold them accountable. Women and all Americans deserve to maintain more of their hard-earned money and increase financial security for retirement and building a family.
Carrie Sheffield is a senior policy analyst Independent women's voice.
