Runaway inflation has created a cost-of-living crisis impacting American families, with an average annual increase of $12,000 over the past four years. The Tax Cuts and Jobs Act of 2017, commonly known as the Trump tax cuts, has been one policy providing financial relief by allowing families to retain more money.
However, these tax cuts are set to expire in 2025. If Congress does not act, it could result in an additional $1,500 yearly expense for a typical family of four. As 2025 approaches, many Americans are looking to recover from economic challenges and every dollar counts.
The Trump tax cuts reduced taxes for most Americans through key measures. For instance, an average worker earning about $59,500 in 2024 would save $1,217 on taxes if they have no dependents. Before these cuts were implemented, nearly one-third of Americans itemized their deductions; now fewer than one in ten do so.
The tax cuts played a significant role in shaping what was described as one of the most prosperous economies in U.S. history. Within the first 28 months after their enactment, five million jobs were added to the economy.
If Congress fails to extend these cuts, six out of ten Americans may face substantial tax increases. An average family of four could see their taxes rise by $1,500 annually. This potential hike comes at a time when many Americans are already financially strained.
There is concern that such a tax increase would adversely affect hardworking citizens while benefiting special interests and contributing to financial inefficiencies within the system. Advocates argue that extending the Trump tax cuts is essential for protecting American earnings and ensuring economic stability.
For those interested in advocating for this cause or seeking further information on how to participate with organizations like Americans for Prosperity, resources are available to get involved.
