Making tax cuts permanent for Iowans

On Jan. 14, the U.S. House of Representatives Ways and Means Committee held our first hearing of the year on the need to make the Tax Cuts and Jobs Act — also known as the Trump tax cuts — permanent.

This tax reduction package, which was one of President Donald Trump’s many legislative victories during his first administration, was a major success for taxpayers, our economy and our country.

It doubled the standard deduction for our families, increased the child tax credit, cut income taxes, enacted a 20 percent tax cut on qualified business income for our small businesses and increased the asset exemption threshold on the death tax for our farmers and business owners.

However, at the end of this year, the Tax Cuts and Jobs Act expires absent congressional action. It’s why Republicans recently passed a budget resolution to extend these tax cuts for our families, farmers, workers and businesses.

The passage of the Tax Cuts and Jobs Act, and its many benefits, showed what tax reform could do for our economy and our country.

Before the Tax Cuts and Jobs Act becoming law, the nonpartisan Congressional Budget Office forecast that gross domestic product growth would be 2.2 percent in 2018 and 1.7 percent in 2019.

But, after it was signed into law, real GDP jumped by 3 percent in 2018 and 2.5 percent in 2019 — marking major upward adjustments in actual economic growth.

Even after reducing corporate income tax rates from 35 percent to 21 percent, corporate income tax revenues increased in 2021, 2022 and 2023.

When businesses are free from excessive taxation and regulations, they can hire, invest and develop at a more rapid and sustainable pace.

Our families also experienced major financial gains from the Tax Cuts and Jobs Act.

Real median household income grew by $6,160 in 2018 and 2019 in total — which is more than in the previous 10 years combined. Real wages jumped 4.9 percent in 2018 and 2019 — the quickest pace of two-year growth in 20 years — and Americans who earned less than $100,000 saw an average tax cut of 16 percent.

Moreover, the U.S. poverty rate fell to its lowest level in recorded history with roughly six million people being lifted out of poverty because of the pro-growth, pro-family, pro-worker provisions of the Tax Cuts and Jobs Act.

Last November, the American people elected President Trump and Republican majorities to Congress to reignite the Tax Cuts and Jobs Act success story.

That’s why, alongside my Republican colleagues, I am focused on extending the Tax Cuts and Jobs Act as quickly as possible because expiration is not an option.

Should these tax cuts lapse, the average American taxpayer would see a 22 percent tax hike, families would see their child tax credit cut in half, 26 million small businesses would face a top tax rate of nearly 44 percent and approximately 91 percent of all taxpayers would have their standard deduction slashed by 50 percent.

Our farm producers and small business owners also would see their increased exemption for the death tax lapse.

By making the Tax Cuts and Jobs Act permanent, we can maintain the doubled standard deduction, protect the child tax credit, keep taxes low for our small businesses and promote farm and business investment with immediate 100 percent bonus depreciation.

These provisions helped promote economic growth, increase real wages and create the conditions for real median household income to rise by $5,000.

Additionally, I recently introduced the Death Tax Repeal Act with Senate Majority Leader John Thune to permanently eliminate the death tax on our family farms and small businesses.

When family farms are passed to the next generation, land and other important assets are heavily taxed.

Currently, when a family is mourning the passing of a family member, Big Government swoops in and pulls money from their pockets once again.

I have spoken to too many farmers and small business owners who are fearful that their children and grandchildren will not be able to uphold the family tradition because the death tax would require them to sell land, equipment and other assets just to pay the enormous tax bill levied by the federal government.

This unfair double tax threatens our traditions and way of life in rural communities and must be completely repealed.

As the only member of Congress serving on both the House Agriculture Committee and the House Ways and Means Committee, the extension of the Tax Cuts and Jobs Act is a top priority for me.

Extension means more investment opportunities, more potential for growth, less red tape and lower taxes for our families.

With the support of President Trump, we will grow our economy, strengthen our strategic position against countries like China and deliver tax relief for our families, farmers, workers and businesses.

This op-ed was originally published in the Northwest Iowa Review on April 15, 2025.