January 29, 2024
Dear Majority Leader Schumer, Speaker Johnson, Minority Leader McConnell and Minority Leader Jeffries,
On behalf of the undersigned organizations who represent the interests of taxpayers, consumers and families across the country, we urge you to pass the Tax Relief for American Families and Workers Act of 2024 (TRAFWA). This legislation would deliver a much-needed boost to our economy while providing families with tax relief at a time when inflation remains persistently high. Importantly, it will accomplish these goals without significantly adding to our national debt.
The Tax Cuts and Jobs Act of 2017 (TCJA) helped to create a strong economic climate that boosted wages, created jobs, and increased capital investment. Unfortunately, due to the lingering effects of the pandemic and a number of poor public policies, economic conditions have deteriorated and many Americans are struggling. As more and more portions of the TCJA have started to expire and phase out, it is imperative that Congress take action.
These circumstances make passage of the TRAFWA critical. This bill builds on the success of the TCJA by restoring full expensing for equipment (Section 168(k) of the Internal Revenue Code) and R&D expenditures (Section 174) and increasing the deductibility of interest and amortization costs (Section 163(j)). According to the Tax Foundation, out of the 11 expiring provisions of the TCJA, these three have the potential to create the biggest economic boost.
In addition to the business-side reforms, the TRAFWA provides an expanded child tax credit that will put more money in the pockets of struggling families and index the credit to help shield its recipients from inflation.
These policies are offset by accelerating the termination of the Employee Retention Tax Credit, which has outlived its intended purpose and been victimized by widespread fraud and abuse.
This is a strong pro-growth tax package that sets the stage for making all provisions of the TCJA permanent in the future. We strongly urge you to pass this legislation and continue to work to improve economic conditions for all Americans.
Sincerely,
Pete Sepp, National Taxpayers Union
Saulius “Saul” Anuzis, 60 Plus Association
Steve Pociask, American Consumer Institute
Terry Schilling, American Principles Project
Bob Carlstrom, AMAC Action
Ryan Ellis, Center for a Free Economy
Jeff Mazella, Center for Individual Freedom
Gerard Simeca, Consumer Action for a Strong Economy
Palmer Schoening, Family Business Coalition
Jason Pye, Freedom Works
Mario H. Lopez, Hispanic Leadership Fund
Patrice Onwuka, Independent Women’s Voice
Andrew Langer, Institute for Liberty
Sal Nuzzo, James Madison Institute
Charles Sauer, Market Institute
Karen Kerrigan, Small Business & Entrepreneurship Council
David Williams, Taxpayers Protection Alliance
Alden Buzzerti, The Bull Moose Project