Working Families Tax Cut Act targets middle-class families with increased guaranteed deduction over next two years.
WASHINGTON, D.C. - Congressional representatives Michelle Steel (CA-45) and Nicole Malliotakis (NY-11) have tabled the Working Families Tax Cut Act, a bill designed to provide significant tax relief to middle-class American families, building upon previous Republican tax policies.
The new legislation, presented by the two members of the House Committee on Ways & Means, proposes a bonus guaranteed deduction of $4,000 for working families and $2,000 for individual filers on tax returns for 2024 and 2025. This initiative builds upon the success of the 2017 Tax Cuts and Jobs Act, which reduced federal tax rates across all income levels and doubled the standard deduction, as reported by the Congressional Budget Office (CBO).
Steel and Malliotakis argue that their new legislation responds to the hardships experienced by their constituents due to the increase in inflation and high taxes. Steel said, "This bonus will drive their federal tax bill lower and will allow families to spend their hard-earned wages the way they see fit."
Both congresswomen criticized President Biden's fiscal policies, citing their influence on inflation and the cost of living for middle-class families. "Americans can no longer keep up with price increases," said Malliotakis, asserting that the new legislation would allow these families to retain more of their earnings.
Jason Smith, the Chairman of the Ways & Means Committee, stated that the proposed bill comes as a response to numerous complaints from various sectors about the financial pressures resulting from the current economic situation. Smith commended the Working Families Tax Cuts Act for offering middle-class families some respite through an enhanced standard deduction.
The bill emerges as a contrast to Democrats' push for tax increases, with Republicans pledging their commitment to help Americans keep more of their hard-earned money. The final say on whether the Working Families Tax Cut Act will be adopted rests with Congress.