The presidential election is only days away and recent polls seem to have the candidates at a near tie. With the economy remaining the top issue for voters, tax policy has been an important part of the campaign platforms of both Vice President Kamala Harris and former President Donald Trump.
As the election comes to a close, the candidates should recall the ideas that were contained in the bipartisan Tax Relief for American Families and Workers Act of 2024 (TRAFWA) that passed the House and remains pending in the Senate. That bill focuses on some of the provisions from the 2017 Tax Cuts and Jobs Act (TCJA) that were reduced before the broader tax code expirations that will happen at the end of 2025. In particular, TRAFWA would restore full expensing for equipment and research and development expenditures. Additionally, the bill addresses the child tax credit, adjusting provisions to increase its impact in a fiscally sustainable way.
NTU and a coalition of other tax and budget-focused organizations recommended addressing ongoing tax issues stating:
The Tax Cuts and Jobs Act of 2017 (TCJA) helped to create a strong economic climate that boosted wages, created jobs, and increased capital investment. Unfortunately, due to the lingering effects of the pandemic and a number of poor public policies, economic conditions have deteriorated and many Americans are struggling. As more and more portions of the TCJA have started to expire and phase out, it is imperative that Congress take action.
These policies are offset by accelerating the termination of the Employee Retention Tax Credit, which has outlived its intended purpose and been victimized by widespread fraud and abuse. This is a strong pro-growth tax package that sets the stage for making all provisions of the TCJA permanent in the future. We strongly urge you to pass this legislation and continue to work to improve economic conditions for all Americans.
In January, the bill quickly passed by a wide margin in the House of Representatives, but stalled when it reached the Senate. Absent promotion from a presidential candidate, both full expensing and the child tax credit will land in the lap of either the lame duck Congress or the incoming Congress along with the other expiring provisions of the TCJA. Promising to act on these policies would be an easy win for the candidates in the final stretch of their campaign. The elements of TRAFWA would benefit business owners and families, groups both candidates are actively trying to court.