Congressman Ryan Zinke voted for H.R. 7024, the Tax Relief for American Families and Workers Act. The $600 billion-dollar bipartisan tax cuts package consists of three main pillars: culling COVID-era spending, incentivizing more American research and development, and inflation-adjusted Child-Tax Credits for working families. To help small- and medium-sized businesses hit by decades-high interest rates, the Tax Relief for American Families and Workers Act boosts interest expense deductions, giving job creators the tools to help meet payroll and expand their operations. This alone is estimated to create 867,000 new jobs and $58 billion in additional take-home pay for American workers. “Right now, Montanans of all walks of life are feeling the pressure of Bidenomics – especially those working families and small business owners,” Zinke said. “My tax policy is simple – lower taxes, less government, more growth. This legislation fits the bill. This tax-cut package is a win-win for small businesses who need the worker, and the worker who needs the cash to keep themselves afloat in the terrible Biden economy.” Read the bill here. Section by Section: Locks in Pro-Growth GOP Tax Policies and Boosts Competitiveness with China - Research & Development (R&D) expensing so businesses of all sizes can immediately deduct the cost of their U.S. R&D investments instead of over 5 years – supporting innovation and growth here at home.
- Interest deductibility to help small- and medium-sized businesses meet payroll and grow particularly at a time of high interest rates.
- 100% expensing for business investment in U.S. facilities, equipment, and machines.
- End double taxation on businesses and workers operating in both the U.S. and Taiwan
Supports Main Street Businesses and Rebuilding American Communities - Disaster tax relief for communities affected by recent events, including hurricanes, wildfires, and the Ohio rail disaster.
- Increase small business expensing to $1.29 million – a $290,000 increase above the level enacted in GOP tax reform in 2017.
- Cut red tape for small businesses by adjusting the reporting threshold for subcontract labor from $600 to $1,000 – the first update since the 1950s.
- Increase access to housing with bipartisan provisions to increase state tax credit allocations and provide more flexibility on bond financing requirements.
Eliminates Fraud and Waste by Cutting Off Funding for COVID-Era Spending Program - Save taxpayer dollars by accelerating the deadline for filing backdated claims under the employee retention credit – a program hit by major cost overruns and rampant fraud.
Maintains a Child Tax Credit Structure that Rewards Work - Support middle-class families struggling with high prices by adding an inflation adjustment to the $2,000 child tax credit topline amount starting in 2024.
- Eliminate penalty for large families to ensure child tax credit work incentives apply equally to families with multiple children.
- Flexibility for parents to use a current- or prior-year income calculation in 2024 and 2025.
- Retain GOP tax reform’s structure for refundability with incremental increases to the refundable portion through 2025 – at the same time, the topline credit amount will be increasing with the new inflation adjustment.
- Reject extreme policies advocated by far-left groups that would eliminate existing work requirements or allow the IRS to send out recurring checks – reducing by 92 percent the cost of the child tax credit changes compared to the $120 billion-per-year policy that Democrats enacted for 2021.
Builds on the Economic Successes of the 2017 GOP Tax Reform - Avoid the 1 million jobs economist say will be lost if R&D expensing, interest deductibility, 100% expensing, and other pro-growth GOP tax policies are not extended.
- Lock in over $600 billion in proven pro-growth, pro-America GOP tax policies with these three key provisions.
Puts the Economy on Track to Return to Prior Economic Strength Starting in 2025 - In the two years immediately following passage of the 2017 GOP tax reform, GDP growth was a full percentage point higher than the previous 10-year average and economists’ estimates – resulting in more jobs and opportunity.
- Unemployment was at the lowest rate in 50 years, including all-time lows for African American and Hispanic workers, and those without a high-school degree – alongside the lowest poverty rate in a half century.
- Wages grew at a rate 4.9 percent higher than inflation – the fastest two-year growth in real wages in 20 years.
- Household income rose by $5,000 – a bigger increase in just two years than in the prior eight years combined under the Obama-Biden Administration.
- After three years of the Biden Administration’s crippling price increases, shrinking pocketbooks, and lower economic opportunity, GOP tax policies will help American workers and families get back on their feet.
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