Permanent Tax Relief for Families and Main Street

Senate Republicans’ Improved Reconciliation Bill Contains a Permanent Extension of President Trump’s Signature Tax Cuts and Jobs Act and Even More Relief for Seniors and Working Americans

“This is going to be very much about middle-income taxpayers. If we don’t act, at the end of the year, there will be a $2.6 trillion tax increase on families making less than $400,000 a year and a $600 billion tax increase on small businesses. So this is really about preserving and protecting families and ensuring that they’ve got more dollars in their own pocket and they’re sending less to Washington.” – Senate Majority Leader John Thune (R-S.D.)

PERMANENTLY LOW TAX RATES FOR WORKING AMERICANS

“This bill prevents an over-$4 trillion tax hike and makes the successful 2017 Trump tax cuts permanent, enabling families and businesses to save and plan for the future… I look forward to continued coordination with our colleagues in the House and the Administration to deliver President Trump’s bold economic agenda for the American people as quickly as possible.” – Senate Finance Committee Chairman Mike Crapo (R-Idaho)

Text released by the Senate Finance Committee will permanently extend the 2017 Tax Cuts and Jobs Act (TCJA), preventing a $4 trillion tax increase on the American people and a $2.6 trillion tax hike on households earning less than $400,000 per year. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; U.S. Senate Committee on Finance: Crapo: Republicans are United in Delivering Trump’s Pro-Growth Agenda – 4/4/25; The Wall Street Journal: Editorial: Republicans Reconcile on Taxes – 2/14/25)

This permanent extension of the TCJA will prevent a $1,700 tax hike for a typical family of four making $80,000. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; Tax Foundation: Tax Calculator: How the TCJA’s Expiration Will Affect You – 3/12/24)

The increased child tax credit will be made permanent, benefiting 46 million American families and preventing it from being cut in half. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; Bloomberg Government: Will Trump and Congress Extend TCJA Tax Cuts? – 2/20/25; Bipartisan Policy Center: Breaking Down the Child Tax Credit: Refundability and Earnings Requirements – 12/18/23)

The standard deduction, which is claimed by nearly 90% of taxpayers, will be permanently increased, beginning at $16,000 for single filers, $24,000 for heads of household, and $32,000 for marriedindividuals filing jointly, and increased further in the future to adjust for inflation. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; Tax Foundation: Nearly 90 Percent of Taxpayers Are Projected to Take the TCJA’s Expanded Standard Deduction – 9/26/18)

PERMANENT TAX RELIEF FOR SMALL BUSINESSES AND MANUFACTURERS WILL CREATE JOBS, INCREASE WAGES, AND PROMOTE INNOVATION

The small business 20% tax deduction for pass-through businesses will be permanently extended, preventing a massive tax hike and giving small businesses certainty to make long-term decisions. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; The Wall Street Journal: The New Tax Law: Pass-Through Income – 2/13/18)

Nationally, 96% of small businesses are considered pass-through businesses, comprising 33 million businesses that employ more than 68 million workers. Out of those 33 million businesses, 25.9 million of them claimed the small business tax deduction in 2021. (EY on Behalf of NFIB: Macroeconomic impacts of permanently extending the Section 199A deduction on small businesses – Sept. 2024)

Bonus depreciation will be permanently extended, allowing businesses to invest and grow. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25)

- “Businesses should be able to write off the full expense of their capital investments in the year they are made, and the Senate should strive to cut spending elsewhere to balance out the revenue losses from making bonus depreciation permanent.” (National Review: The Senate Can Improve the House-Passed Tax Bill – 5/23/25)

Businesses and manufacturers will be able to permanently and immediately expense 100% for research and development and their full interest costs. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25)

“Currently, manufacturers in the United States perform 53.9% of all private-sector research and development in the nation, driving more innovation than any other sector.” (Real Clear Energy: The U.S. Senate Can Give American Manufacturers the Certainty They Deserve – 6/5/25)

- Making the TCJA permanent, including these pro-manufacturing policies, would save over 1 million manufacturing jobs. (National Association of Manufacturers: Tax Increases Threaten American Jobs and Wages – accessed 6/15/25)

SENATE REPUBLICANS’ BILL ALSO INTRODUCES PRESIDENT TRUMP’S NEW TAX RELIEF POLICIES FOR WORKING FAMILIES AND SENIORS

“Not only must we permanently extend the Trump tax cuts - you know, if we don't, you're going to have about a 60 percent tax increase - but I also intend to keep my promises, starting with no tax on tips, no tax on Social Security, and no tax on overtime.” – President Donald Trump

Tipped wages, “up to $25,000 for qualified tips,” will no longer be taxed, benefiting millions of American service workers. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25)

Overtime wages, “up to $12,500 ($25,000 in the case of a joint return) for qualified overtime compensation,” will no longer be taxed, increasing labor productivity and giving millions of hourly workers more take-home pay. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25)

Americans will no longer have to pay taxes on “up to $10,000 for qualified passenger vehicle loan interest during a given taxable year” for new cars made in the United States. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25)

There will be a new increased standard deduction for seniors at $6,000 for each qualifying senior, decreasing their tax burden on Social Security payments.
(U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; White House: Preserving and Expanding Low Tax Rates to Create American Economic Prosperity – May 2025)
The bill also repeals a Biden-era rule that would have required Americans using third party payment apps to report transactions as low as $600 to the IRS. (U.S. Senate Committee on Finance: Chairman Crapo Releases Finance Committee Reconciliation Text – 6/16/25; U.S. House Committee on Ways and Means: The One, Big, Beautiful Bill Eliminates Democrats’ Onerous IRS Reporting Requirement for Third-Party Apps, Gig Workers – 6/5/25)

THE AMERICAN PEOPLE OVERWHELMINGLY SUPPORT THESE TAX RELIEF POLICIES

Making these provisions permanent will increase wages and jobs:

According to the White House Council of Economic Advisers, “The total long run effect of both extending low rates and instituting permanent full expensing for equipment and R&D is an investment boost of 4.4 to 6.7 percent, a 1.0 to 1.6 percent higher level of real GDP, and increased wages of $3,955 to $7,031.” (White House: Preserving and Expanding Low Tax Rates to Create American Economic Prosperity – May 2025)

The Tax Foundation forecasts that, due to Republicans’ tax legislation, “[h]ours worked would expand by 983,000 full-time equivalent jobs,” increasing take-home pay and growing the economy in the process. (Tax Foundation: “Big Beautiful Bill” House GOP Tax Plan: Preliminary Details and Analysis – 5/23/25)

Americans support these Republican priorities:

“80% of potential voters said it was not ideal to increase taxes — up four percentage points from September — and a mere 3% said it was a good time for an increase.” (New York Post poll – 5/5/25)

“By a nearly 3- to- 1 margin (64% to 20%), voters favor permanently extending the TCJA noting its ability to reduce and simplify the federal tax burden on families and businesses, stimulate economic growth, create jobs, and enhance the global competitiveness of American companies.” (U.S. Chamber of Commerce poll – 3/4/25)

74% of American voters said not extending the TCJA would hurt small businesses. (New York Post poll – 5/5/25)

According to a January Associated Press-NORC poll, by a 54%-22% margin, Americans support “eliminating taxes on earnings from tips.” (AP-NORC poll – Jan. 2025)

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