East Idaho Times

Washington, D.C.--U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) delivered remarks at a hearing entitled “The 2025 Tax Policy Debate and Tax Avoidance Strategies.”

As prepared for delivery:

“Thank you, Mr. Chairman. This hearing is a timely hearing on one of the more critical issues that will face our nation next year and frankly, is facing us right now.

“We’ll have an opportunity to talk about the reality of the 2017 Tax Cuts and Jobs Act (TCJA), which is the focus of the debate next year, and what it really does.

“The reality, contrary to what is often said by my colleagues on the other side of the aisle, is that the TCJA that was put into place when the Republicans and President Trump controlled Congress had a massive positive effect on everyone in America.

“The economy grew to be the strongest economy, I think, in any of our lifetimes, unemployment was at historic lows, wage growth and job growth was increasing month after month, inflation was at 2 percent rates, and we were moving ahead rapidly and strongly.

“Americans today are rightly concerned about rising living costs, slow job growth and an unemployment rate that remains above 4 percent. Not to mention the inflation rate that cumulatively over just the last three and a half years is well over 20 percent.

“Taxpayers already face too much uncertainty as they look to work, save and invest in this economic environment. And given the litany of tax hike proposals on the table from many of my Democratic colleagues, no area is more uncertain as we head into this election than tax.

“When it comes to the 2025 tax policy debate, those proposing all these tax increases continue to avoid a fundamental question: will they allow the Tax Cuts and Jobs Act to expire and inflict multi-trillion-dollar tax hikes on the American people?

“Vice President Harris has largely avoided policy specifics and adopted rhetoric about taxing the wealthy and corporations, which ignores the reality of what our current tax code means for middle-income taxpayers.

“TCJA lowered tax rates across-the-board providing trillions of dollars in tax savings with middle-income taxpayers receiving the largest proportional benefit of cuts.

“It also doubled both standard deduction as well as child tax credit making it simpler while targeting relief towards middle class families

“If these provisions are allowed expiration individuals making less than $400k/year would face increase exceeding $2T breaking Biden-Harris pledge not imposing hikes onto middle-class

“And doesn't account for inflation; By year's end said pledge needs increase nearly $500k due crushing inflation experienced under Biden-Harris Administration; Pledge ignoring marriage penalty couples filing jointly above threshold but individually below

“Despite promise aiding startups Vice President Harris hasn’t addressed crucial pass-through deduction vital form chosen by small businesses enabling them create jobs pay employees reinvest operations

"Unless Congress extends provisions taxpayers face largest increase US history

"Despite critics' claims TCJA simply 'tax break billionaires,' law provided break majority Americans limiting costly deductions

"For instance SALT limitation effectively subsidizing high-income residents states like California New York contrasting Democrats’ recent pledge ending cap benefiting high-income households according left-leaning Tax Policy Center

"By endorsing Biden budget Vice President Harris calls $5T increases affecting entire income spectrum harming job creators workers nationwide: individual family business corporate savings investment audit funding increases proposed under guise 'taxing rich' 'pay fair share'

"But facts matter;

"In fact TCJA made code more progressive increasing share paid high earners while bottom half saw reductions average rates

"Biden-Harris Administration repeatedly claimed falsely federal rate top earners only 8% Joint Committee confirmed average quadruple amount at 34%

"As committee considers future policy American people deserve deliberation beyond empty platitudes proposals failed passing even Democrat-controlled Congress; Deserve policies ensuring growth certainty opportunities

"I commit helping hardworking taxpayers working cross-party focusing priority excellent panel awaits testimony Thank you”

###