On Friday (June 9), House Republicans unveiled a tax package that aims to put $4,000 more in the pockets of American families and includes a series of tax breaks for small businesses and individuals.
Ways and Means Committee Chairman Jason Smith (R-Mo.) said the package results from his panel’s U.S. field hearings this year, where they listened to business people and other Americans in New York, West Virginia, Oklahoma, and other states.
Smith revealed the bill brings together the critical ideas presented by members of the Ways and Means Committee in response to the expressed needs and concerns of the American people.
He added that the bill “builds on successful” Republican tax policies that have boosted economic growth and led to the fastest “real wage” growth in 20 years.
Smith asserted that the “policies will provide relief for working families, strengthen small businesses, grow jobs, and protect American innovation and competitiveness.”
The plan consists of three laws that form the House GOP’s position on fiscal policy.
Chief among them is the Tax Cut for Working Families Act, which offers a guaranteed tax credit of $4,000 to married couples filing jointly who earn up to $400,000 a year.
Someone filing for up to $300,000 as a household can get a $3,000 deduction.
According to the Committee, about 107 million families would be entitled to the benefit, which would last two years.
The Tax Cuts for Working Families Act was based on legislation introduced by Republican Reps. Nicole Malliotakis (N.Y.) and Michelle Steel (Calif.).
Another aspect, the Small Business Jobs Act, aims to cut red tape for business owners who must file Form 1099-MISC for subcontractor work that pays them $600 or more. That $600 threshold, which the Committee said has been in place since 1954, would be raised to $5,000 under the GOP bill.
The bill would also reverse an IRS policy change by the Biden administration that requires payments of at least $600 from money transfer programs like Paypal and Venmo to be reported to the IRS. The Small Business Jobs Act would revert to the previous limit of $20,000.
The Republican tax plan would also expand tax breaks for corporations that invest in startups and, among other tax-related provisions, extend key rules of the Trump administration’s Tax Cuts and Jobs Act, which expires in 2025.
