NW Valley Times

The United States Joint Economic Committee (JEC) held a hearing on November 19, 2024, to examine the potential impacts of allowing several provisions of the 2017 Tax Cuts & Jobs Act (TCJA) to expire. According to the House Committee on Ways & Means, failure to renew these provisions could lead to significant tax increases for many Americans.

The committee highlighted that 207 million taxpayers could face an average tax increase of 22 percent. Additionally, families of four with a median national income might see their taxes rise by $1,695. Other effects include halving the Guaranteed Deduction and reducing the Child Tax Credit from $2,000 to $1,000.

Congressman David Schweikert asked during the hearing how economic expansion can be focused on through tax code adjustments, particularly in removing barriers that hinder innovation. Former Chairman Kevin Brady and former Congressional Budget Office Director Dr. Douglas Holtz-Eakin were among those who testified.

"A tax code done right is a force for good," stated Chairman Brady. He emphasized building on TCJA's achievements such as higher wages and lower poverty levels by making certain provisions permanent.

Dr. Holtz-Eakin stressed broadening tax reform efforts and minimizing specific business model disruptions. He advocated for reforms that are deficit-neutral and align with societal developments since TCJA was enacted in 2017.

Looking ahead to next year, Congressman Schweikert's New Economy Tax Team plans to craft a dynamic tax code supporting entrepreneurship and innovation while preparing for potential challenges in 2025.

Republicans aim to develop legislative proposals enhancing TCJA's success by promoting economic growth and fiscal responsibility under Chairman Jason Smith's leadership within the U.S. Joint Economic Committee alongside Ways and Means Tax Teams.

Congressman David Schweikert serves as Vice Chairman of JEC and holds various leadership roles including Chairing the Oversight Subcommittee within the Ways and Means Committee.