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Make Tax Cut and Jobs Act permanent

The economic benefits of the Tax Cut and Jobs Act of 2017 have proven the be a roaring success for the U.S. economy with ripple affects such as promoting pay raises and bonuses for many workers and lower utility rates and insurance premiums in some areas.The GDP (gross domestic product) — which is the monetary measure of the market value of all the final goods and services produced in a period of time — hit a robust 4.1 percent in the second quarter of this year, beating expectations.It only makes good common sense to make the TCJA permanent both for the economic good of the country, and to avoid the disastrous impact of a massive tax increase when the act is scheduled to expire in 2025.The House Ways & Means Committee Chairman, Kevin Brady, R-Texas, recently released the framework for “Tax Reform 2.0” that would make the TCJA permanent.Also the framework provides additional benefits, such as:• Improve the ability for families to save for retirement.• Expand the potential tax-free uses savings accounts to include home schooling, student debt, and apprenticeship fees for learning vocational skills.• New Baby savings by eliminating certain penalties on retirement distributions.• Establish Universal Savings Accounts that would provide savings on numerous expenses.• Allow start-up businesses to deduct more beginning start-up costs.The Tax Foundation, a nonpartisan think-tank, released its analysis of making the TCJA permanent and concluded , “If extended, these provisions would increase the long-run GDP by 2.2 percent, long-run wages by 0.9 percent, and add 1.5 million full-time equivalent jobs.”The report also concluded, “The distributional impact of making the individual side of the TCJA permanent would mean a roughly 1.5 percent increase in after-tax income for every income quintile.”Making the TCJA permanent would additionally bring long-term stability to the economy, and eliminate a degree of uncertainty that could be a real drag on investment for the future.It only makes good common sense to make permanent something that seems to be working so well.Tax Cut & Jobs Act