Resolution Urging Congress to Permanently Extend the Tax Cuts and Jobs Act of 2017

Model Bill Info
Bill Title	Resolution Urging Congress to Permanently Extend the Tax Cuts and Jobs Act of 2017
Date Introduced	March 18, 2022
Date Finalized	April 5, 2022
Type	Model Resolution
Status	Final
Task Forces	Tax and Fiscal Policy

Resolution Urging Congress to Permanently Extend the Tax Cuts and Jobs Act of 2017

WHEREAS, prior to government-mandated economic shutdowns during the COVID-19 pandemic, the Tax Cuts and Jobs Act of 2017 spurred steady economic expansion and allowed the spirit of entrepreneurship to flourish, while creating new jobs and opportunities for millions of Americans;

WHEREAS, the tax cuts of 2017 resulted in a $1.5 trillion net tax cut, and were followed by historically low unemployment rates, an increase in business investment, and a $6,000 increase in real median household income over two years – which included scores of raises and bonuses for workers immediately after the 2017 tax cuts were adopted;

WHEREAS, more than 100 million American taxpayers from all income groups, but especially middle and working class American taxpayers, have enjoyed real tax relief due to the Tax Cuts and Jobs Act;

WHEREAS, twenty-three provisions of the 2017 tax cuts directly relating to individual income taxes, such as the reductions in personal income tax rates, the near doubling of the standard deduction, and the substantial reduction of the hated Alternative Minimum Tax (AMT) will expire after December 31, 2025;

WHEREAS, the 2017 tax cuts reduced federal tax rates for households across every income level, and this relief resulted in a tax cut of more than $1,500 for the average middle-income earner;

WHEREAS, prior to the 2017 tax cuts, the top corporate income tax rate in the United States was 35%, the highest among all nations in the Organization for Economic Co-operation and Development (OECD);

WHEREAS, the 2017 tax cuts reduced the business tax rate from 35% to 21%, bringing the United States back to average among OECD member nations, and dramatically enhancing American competitiveness;

WHEREAS, the 2017 tax cuts set an annual cap of $10,000 on the state and local tax (SALT) deduction, thereby broadening the tax base at the federal level and in many states, which caused state level budget surpluses and resulted in many states offering substantial tax relief;

WHEREAS, if the current $10,000 cap on the SALT deduction is allowed to expire after December 31, 2025, the federal tax base will be narrowed;

WHEREAS, returning to an unlimited SALT deduction would be an incentive for many states to once again implement higher taxes and spend at higher levels;

WHEREAS, a majority of Americans support making the 2017 tax cuts permanent;

WHEREAS, allowing the Tax Cuts and Jobs Act of 2017 to expire would result in a massive tax increase on hardworking American taxpayers, a significant decline in American competitiveness, fewer jobs, reduced wage income for workers, and higher prices;

NOW, THEREFORE BE IT RESOLVED, that the legislature of the state of [Insert State] urges the United States Congress to permanently extend the Tax Cuts and Jobs Act of 2017 with commensurate spending cuts to avoid increasing the federal debt burden.