If Republicans delay the Trump tax cuts, they will lose the House. President Trump has repeatedly emphasized the importance of making his tax cuts permanent. The tax cuts are set to expire at the end of next year, and unless Congress acts, the standard deduction will be cut in half, damaging 90% of tax filers. Additionally, 40 million families would see their Child Tax Credit cut in half, and small business owners would be hit with a 43.4% tax rate.
Delaying the tax cuts would be a repeat of past mistakes made by Republicans. In 2017, they delayed tax reform until the second reconciliation bill, wasting months of the president’s time and allowing for the repeal of Obamacare to be turned down by John McCain.
If the tax cuts are not extended, the Trump administration will be unable to sign its signature legislative achievement, the Tax Cuts and Jobs Act, and the economy will be negatively impacted. The median household income rose 6.8% in 2019, the largest annual increase on record, as the Trump economy boomed for everyone, including minority households.
Despite this growth, Republicans were wiped out in the 2018 midterm elections, losing 40 House seats. If they had enacted the tax cuts earlier, they would have started the recovery a year earlier and could have had a more favorable electoral landscape.
The 2017 Trump Tax Cuts are set to expire at the end of next year, and any delay would have severe consequences. Businessmen and women will not invest based on hopes or promises, and they need to know that the tax cuts are the law of the land. The sooner the tax cut is made permanent, the sooner Americans will see pay increases and job creation.
In 1981, President Reagan agreed to phase in his landmark tax cuts, delaying their full effect until 1983. This delayed the economic growth, and Republicans lost 26 House seats in the 1982 midterms. The same mistake cannot be repeated with the Trump tax cuts. Given the razor-thin majority in the House, any delay could lead to the failure to extend the tax cuts altogether.