East Idaho Times

Ahead of the Senate's debate on the FY2025 Budget Resolution, U.S. Finance Committee Chairman Mike Crapo (R-Idaho) emphasized the importance of extending the Trump tax cuts. These cuts, initially implemented to lower rates for Americans across all income levels, are set to expire at the end of the year. Crapo warned that allowing them to lapse would result in what he described as "the largest tax hike in U.S. history."

Crapo outlined his position during a speech where he highlighted several key points about the potential consequences of not extending these tax cuts. He stated, "At the end of this year, many key provisions of President Trump’s 2017 Tax Cuts and Jobs Act are set to expire, triggering an over-$4 trillion tax hike on American families and businesses." According to Crapo, if these cuts are not extended, taxes will increase for Americans at all income levels.

He detailed that "the majority of this tax hike, about $2.6 trillion, will fall on those making less than $400,000 per year," with an average family of four earning approximately $80,000 facing a $1,700 increase in their taxes by 2026. Crapo also mentioned that small business owners could see federal tax rates rise significantly.

Crapo defended the original impact of the Trump tax cuts by stating they had increased take-home pay and stimulated economic growth across various sectors. He argued that these measures made "the tax code more progressive," with higher-income earners paying a greater share of taxes post-2017.

The senator further explained that failure to extend these policies would have wide-reaching economic repercussions: "If we allow the Trump tax cuts to expire...U.S. GDP will be reduced by $1.1 trillion." Despite current discussions focusing on other budgetary issues such as national defense and energy production, Crapo stressed that addressing this potential tax increase remains crucial.

In conclusion, Crapo reiterated his commitment to working alongside fellow Republicans to make these tax cuts permanent in order to avoid significant financial burdens on American families and businesses.