Celebrating One Year of Republican Tax Relief

Celebrating One Year of Republican Tax Relief

Washington, D.C.-One year ago, Republicans enacted the landmark Working Families Tax Cuts that not only provided historic tax relief for working-class Americans but also made permanent critical pro-growth tax policies that have increased domestic investment and boosted economic growth. The landmark legislation is helping small businesses grow; rewarding the working class; delivering relief for tipped workers and seniors; investing in rural health care and communities; expanding educational opportunities; helping the next generation build wealth; and so much more.

Read on to see how hardworking Americans are benefiting from the Working Families Tax Cuts one year after enactment.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.

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Opinion by U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho)

From our nation's beginning, taxes have played a critical role in Americans' daily lives. Indeed, a series of disputes over unfair taxes contributed to our American Revolution. As we celebrate our independence, Idahoans can also celebrate more opportunities and greater economic prosperity thanks to the enactment of the Working Families Tax Cuts on July 4 last year.

When crafting this legislation, my Republican colleagues and I had several goals. Preventing a more-than $4 trillion tax hike on virtually every American was non-negotiable. However, we also wanted to provide new tax relief to families and seniors, and we needed to unleash the productivity of the private sector by providing certainty in our tax code.

One year in, the Working Families Tax Cuts are working. This tax filing season, over 62 million Americans-more than 40 percent of all filers-took advantage of President Trump's signature new tax relief provisions. Over 7.5 million workers claimed no tax on tips, more than 29 million workers benefited from no tax on overtime, and more than 35 million seniors received an average additional deduction of over $7,500.

Additionally, 6 million children and counting are registered for Trump Accounts, with 1.4 million qualifying for an initial government-funded $1,000 contribution, offering an entire generation an opportunity to build financial security and learn about personal finance.

Altogether, hardworking Americans kept more of their money this tax filing season, and millions of people got more money back. Over $320 billion was refunded to taxpayers-an 18 percent increase from the last filing season-with an average refund of nearly $3,300.

And even the average refund amount does not tell the whole story; many working-class Idahoans who owed money when filing in prior years instead received a refund this year.

In addition to helping people keep more of what they earn, the law is helping them earn more by encouraging economic growth. More than 150,000 Idaho small businesses now have increased confidence thanks to a permanent, pro-growth 20 percent tax deduction and millions more nationwide. Estimates find permanence will create 1.2 million jobs annually and boost small-business GDP by $750 billion over the next decade.

The permanent restoration of full expensing for U.S. research and development is supporting domestic innovation and growth. The Small Business and Entrepreneurship Council recently reported that over three-quarters of small businesses are already directly benefiting from the law. Investment in new equipment and facilities has accelerated and businesses are hiring.

The Working Families Tax Cuts also achieved a historic $1.5 trillion in savings by eliminating waste, fraud and abuse from mandatory spending programs. Commonsense, past-due reforms to Medicaid, like work requirements for able-bodied adults and protections against non-citizens receiving taxpayer-subsidized coverage, will ensure funds are available for those who truly need them.

Of course, health coverage is only helpful when you can access care providers, which can be difficult in communities dealing with low patient volumes, staff shortages and outdated technologies. The $50 billion Rural Health Transformation Program is helping state and local leaders make targeted investments that will allow rural providers to keep serving our communities for years to come. Idaho already received $186 million this year and could receive almost $930 million over the life of the program.

The law is helping Americans build a stronger future, as the initial results-more money in Idahoans' pockets, a booming economy and increased access to health care-are making clear. As we remember our past this Independence Day, we can also look ahead with increased optimism thanks to the Working Families Tax Cuts.