September 4, 2024
The Honorable Jason Smith
Chairman
House Ways and Means Committee
1102 Longworth House Office Building
Washington, DC 20515
The Honorable Richard E. Neal
Ranking Member
House Ways and Means Committee
1102 Longworth House Office Building
Washington, DC 20515
Dear Chairman Smith and Ranking Member Neal:
On behalf of the National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, I write to express our support for H.R. 3270, the Permanent Tax Cuts for American Families Act. This important bill, introduced by Representative Michelle Steel (R-CA), would significantly aid taxpayers by reducing the overall tax burden and simplifying tax preparation.
The Tax Cuts and Jobs Act of 2017 (TCJA) nearly doubled the standard deduction for single and joint filers, raising these amounts from $6,500 to $12,000 for single filers and from $13,000 to $24,000 for joint filers. Unfortunately, under current law, these amounts will revert to their pre-TCJA levels at the beginning of 2026.
The Permanent Tax Cuts for American Families Act would enable taxpayers to retain a greater share of their income by permanently increasing the higher standard deduction amounts established by TCJA and continuing to adjust these amounts annually based on inflation.
Preserving a higher standard deduction would reduce income subject to taxation, thereby lowering tax bills and allowing individuals and households to save a higher proportion of their earnings. These benefits would be particularly significant for lower-income families, as lower standard deduction amounts tend to impact poorer households disproportionately.
Additionally, the Permanent Tax Cuts for American Families Act would simplify tax preparation for millions of Americans. Higher standard deduction amounts would mean that many taxpayers would not need to itemize deductions, significantly reducing the complexity and time involved in filing taxes. Such simplification would be especially beneficial for lower-income individuals and households who might struggle to keep up with the growing complexity of the tax system and, in some cases, cannot afford professional assistance from tax advisers or consultants.
For the reasons described above, the National Taxpayers Union strongly supports the Permanent Tax Cuts for American Families Act and urges the committee to approve this vital legislation.
Sincerely,
Ryan Nabil
Director of Technology Policy & Senior Fellow
National Taxpayers Union
122 C St NW
Washington, DC