My weekly column: Preventing the largest tax increase in U.S. history

If Democrats had succeeded and President Trump’s Working Families Tax Cuts were not passed on July 4^th this year, families, farmers, and small businesses would have faced the largest tax increase in U.S. history. Over 210 million American taxpayers would have seen an average 22% tax hike, and the tax increase on an average family of four would have been the equivalent of almost two months’ worth of groceries. 40 million families would have also seen their child tax credit cut in half, draining dollars from budgets and wallets.

Iowans would be no exception to this historic tax hike. In Iowa’s 4^th Congressional District, 82,800 families would have had their child tax credit halved. Likewise, 90% would have seen their standard deduction slashed in half. Nearly 70,000 small businesses would have been hit with a 43.4% tax rate due to the expiration of the 199A Small Business Deduction. More than 27,000 family-owned farms would have their death tax exemption cut in half as well. The Democrats’ inept tax policy would have done immeasurable harm to working-class families, farmers, and small business owners.

Thankfully, Republicans in Congress and President Trump worked to not only extend the 2017 Tax Cuts and Jobs Act but also make the most important provisions even stronger and permanent. The doubled standard deduction is now permanent at nearly $32,000 for married couples, the child tax credit is now $2,200 and permanent, and car-loan interest on American-made cars is tax-free up to $10,000, ensuring that our families can invest in their futures, care for their kids, and put money away for a rainy day without feeling the pinch.

Tipped income, overtime wages, and Social Security benefits have been made virtually tax-free. By letting Iowans keep more of their paycheck, this money flows through our communities and boosts the local economy. This is sound fiscal policy.

Fortunately, the Working Families Tax Cuts also included my bill to increase the death tax exemption to $15 million, which protected two million family farms nationwide, and we made permanent the 20 percent deduction on qualified business income for small businesses and manufacturers so that they can make greater investments in their employees, equipment, and their operations.

President Trump’s tax cuts are pro-growth, pro-family, and pro-worker. Our economy will grow tremendously, manufacturing will be strengthened, and good jobs will be created. Working with President Trump, I will continue to advocate for Iowa families, farmers, workers, seniors, and small businesses.