Glacier Country News

In a move aimed at providing relief to American families and workers, Congressman Ryan Zinke has voted in favor of H.R. 7024, the Tax Relief for American Families and Workers Act. This bipartisan tax cuts package, totaling $600 billion dollars, focuses on three main pillars: reducing COVID-era spending, promoting American research and development, and implementing inflation-adjusted Child-Tax Credits for working families.

The legislation includes measures to support small- and medium-sized businesses that have been struggling due to high interest rates. By boosting interest expense deductions, the Tax Relief for American Families and Workers Act aims to give these businesses the necessary tools to meet payroll and expand their operations. It is estimated that this provision alone will result in the creation of 867,000 new jobs and an additional $58 billion in take-home pay for American workers.

Congressman Zinke expressed his support for the tax-cut package, stating, "Right now, Montanans of all walks of life are feeling the pressure of Bidenomics – especially those working families and small business owners. My tax policy is simple – lower taxes, less government, more growth. This legislation fits the bill. This tax-cut package is a win-win for small businesses who need the worker, and the worker who needs the cash to keep themselves afloat in the terrible Biden economy."

The Tax Relief for American Families and Workers Act also includes various provisions to support main street businesses and rebuild American communities. This includes disaster tax relief for communities affected by recent events such as hurricanes, wildfires, and the Ohio rail disaster. The legislation also increases small business expensing and cuts red tape for small businesses by adjusting reporting thresholds for subcontract labor. Additionally, it aims to increase access to housing through bipartisan provisions that increase state tax credit allocations and provide more flexibility on bond financing requirements.

One of the key aspects of the bill is the elimination of fraud and waste by cutting off funding for COVID-era spending programs. It seeks to save taxpayer dollars by accelerating the deadline for filing backdated claims under the employee retention credit, a program that has been plagued by major cost overruns and rampant fraud.

Furthermore, the legislation maintains a Child Tax Credit structure that rewards work and supports middle-class families struggling with high prices. It introduces an inflation adjustment to the $2,000 child tax credit topline amount, eliminates penalties for large families, and provides flexibility for parents to use a current- or prior-year income calculation. The bill also retains the refundability structure of the GOP tax reform while incrementally increasing the refundable portion.

The Tax Relief for American Families and Workers Act builds on the economic successes of the 2017 GOP tax reform. It aims to avoid the loss of 1 million jobs that economists predict would occur if pro-growth GOP tax policies such as R&D expensing, interest deductibility, and 100% expensing are not extended. By locking in over $600 billion in proven pro-growth, pro-America GOP tax policies, the legislation seeks to put the economy on track to return to its prior strength starting in 2025.

The impact of the 2017 GOP tax reform was significant. In the two years following its passage, GDP growth was a full percentage point higher than the previous 10-year average, resulting in more jobs and opportunity. Unemployment reached its lowest rate in 50 years, and wages grew at a rate 4.9 percent higher than inflation. Household income also saw a substantial increase.

After three years of the Biden Administration's challenges, including price increases and lower economic opportunity, the Tax Relief for American Families and Workers Act aims to help American workers and families get back on their feet.

Overall, Congressman Zinke's support for H.R. 7024 highlights his commitment to lower taxes, less government intervention, and fostering economic growth for the benefit of all Americans.