American families deserve permanent tax cuts 

Every year, filing taxes is both frustrating and confusing for millions of Americans. Not only is the process time-consuming and complex, but also discouraging as taxpayers see a large percentage of their earnings disappear into the depths of the Internal Revenue Service (IRS).  

As a matter of both principle and policy, American families deserve to keep as much of their hard-earned paycheck as possible. Families — not federal bureaucrats or IRS agents — know best how to save, spend, and allocate their money, especially during times of economic hardship. This is particularly true as record-high inflation erodes family budgets and Washington, D.C. takes an ever-growing chunk out of every paycheck. As long-time advocates for commonsense tax reform, we are committed to prioritizing the best interests of hardworking taxpayers — always. 

For too long, Americans have been forced to foot the bill for Washington’s wasteful spending through higher taxes and burdensome red tape. As has become commonplace under the Biden administration, American taxpayers repeatedly pay a significant price for his wasteful spending agenda, seeing their tax dollars lit on fire instead of invested in priorities vital to our economic prosperity and national security. Over the last two years alone, President Biden and Democrats in Congress approved roughly $6 trillion in new government spending that sent inflation through the roof and left our families behind.  

As members of the House Ways and Means Committee, we introduced legislation to ease the burden of inflation on our families, simplify the tax filing process, and ensure that taxpayers — not the federal government — keep more of their hard-earned money. Our bill, the Permanent Tax Cuts for American Families Act, is as straightforward as it sounds. It guarantees that families in California, Iowa, and all 50 states permanently benefit from the enhanced standard deduction — authorized as part of the Tax Cuts and Jobs Act (TCJA) of 2017 — before its 2025 expiration.  

The largest overhaul of the tax code in decades, the TCJA nearly doubled the standard deduction — which represents a specific non-taxable dollar amount that taxpayers can deduct from their total income for tax filing purposes — raising the return from $6,500 to $12,000 for individual filers, and from $13,000 to $24,000 for joint filers. For tax year 2023, the standard deduction will be raised for married couples filing jointly to $27,700 and for individual filers to $13,850 to combat the impact of inflation created by President Biden’s reckless spending policies.  

Absent congressional action, these well-deserved tax cuts for our families will become backbreaking tax hikes. That can’t — and won’t — happen on our watch. 

The enhanced standard deduction constitutes real savings for our families. In 2021 alone, roughly 130 million taxpayers — approximately 91 percent of total filers — used the enhanced standard deduction to complete their taxes. This figure includes 325,000 taxpayers in Iowa’s 4th District and 296,000 taxpayers in California’s 45th District.  

Additionally, the Joint Committee on Taxation estimated nearly 30 million households found it more advantageous to take the standard deduction than to itemize their deductions. For most taxpayers, the larger standard deduction has alleviated the headache of additional paperwork and eliminated the cost of hiring an expensive accountant to comply with every rule and regulation. 

The tangible benefits of the enhanced standard deduction are concentrated among low- and middle-income families. Per recent IRS data, the number of returns itemizing deductions fell by 75 percent for those with income between $20,000 and $30,000 and 74 percent for those with income between $30,000 and $40,000. The enhanced standard deduction is a commonsense solution to make the lives of millions of lower- and middle-income families easier.  

Lower taxes encourage economic growth, promote community investment, and generate greater productivity across every sector of our economy. As strong proponents of low taxes and pro-growth policies, we will continue to use every lever at our disposal to reduce the crushing impact of inflation on our families and promote robust economic growth from coast to coast.  

Our Permanent Tax Cuts for American Families Act represents a vital tool that will lower taxes for American families and combat President Biden’s failed economic agenda. These pro-family, pro-taxpayer policies will reignite the American economy and restore the American Dream for millions of our fellow Americans. 

Randy Feenstra represents Iowa’s 4th District and Michelle Steel represents California’s 45th District. Both are members of the Ways and Means Committee.