The public is facing a $4 trillion tax hike in the coming months. It is now the Senate’s turn to ensure that hike never hits our wallets.
The 2017 Tax Cuts and Jobs Act was a rare win for economic freedom, slashing taxes for individuals and businesses while simplifying the tax code. But as its key provisions approach their expiration at the end of 2025, lawmakers face a choice: make the TCJA permanent or let automatic tax hikes strangle the economy. The permanent option offers a defense of individual liberty, economic growth, and the everyday worker against Washington, D.C.’s insatiable appetite for control.
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The TCJA lowered the corporate tax rate from 35% to 21%, doubled the standard deduction, and slashed individual income tax rates across brackets. These changes unleashed economic dynamism. Between 2017 and 2019, real GDP growth averaged 2.5%, unemployment fell to a 50-year low of 3.5%, and median household income rose by nearly 7%. Small businesses, the backbone of America, thrived under the 20% pass-through deduction, reinvesting profits into hiring and expansion. Everyday workers saw bigger paychecks; a family of four earning $75,000 saved nearly $2,000 annually, according to the Tax Foundation.
There is a reason these reforms enjoy overwhelming bipartisan support. A recent Public Opinion Strategies survey found that 84% — including Democrats — supported Trump’s tax reforms. This is one area where compromise in a bitterly divided Senate should be a slam dunk. Capitol Hill leaders should rally the country around preserving these hard-won gains.
Timing matters. The economy is grappling with inflation, supply chain woes, and a looming recession risk. The Tax Foundation projects that letting the TCJA lapse would shrink GDP by about 1% and cost 159,000 jobs over a decade. Small businesses, already squeezed by rising costs, would lose the pass-through deduction, forcing layoffs or closures. For workers, the numbers are stark: a single filer earning $50,000 would see their tax bill rise by $1,200, while a married couple with two kids earning $100,000 would owe $2,500 more. That’s money not spent at local stores, not saved for college, not invested in a better future. The broader economy would stagnate as consumption and investment dry up, proving once again that tax hikes are a recipe for decline.
Everyday workers stand to lose the most. The TCJA’s expanded standard deduction — $12,000 for individuals, $24,000 for couples — shielded millions from the tax code’s complexity, letting them keep more of their earnings. Lower brackets meant a worker earning $40,000 saw their rate drop from 15% to 12%, a small but real boost to their budget. These gains empowered individuals to make their own choices — whether to pay down debt, start a side hustle, or take a family vacation. Tax hikes would claw back that freedom, redistributing wealth not to the needy, but to Washington’s coffers. Workers, not bureaucrats, should decide how their money is spent.
Washington power players, however, threaten this commonsense relief.
Progressive lawmakers, eyeing revenue for expansive programs, argue that TCJA favored the rich and ballooned the deficit. They’re not wrong about expressing concern for the deficit — federal debt hit $36 trillion in 2025 — but their solution of higher taxes ignores the real culprit: unchecked spending. Analysis by the Congressional Budget Office shows the bulk of this spending growth is driven by out-of-control mandatory outlays. Tax hikes won’t fix that; they’ll just punish productivity. Congress needs to reform these programs so that they fulfill their original goal of providing a safety net without bankrupting the nation. Republicans shouldn’t cave to the false claims from people who made up their mind to oppose the bill long before pen hit paper. If there is one thing the public agrees on — more than 8 in 10 according to our polling — it’s that now is not the time to raise taxes. Now is the time to be bold.
The Senate must act to avoid this disaster, and the procedural path is clear. The TCJA’s expiration is baked into budget reconciliation rules, meaning tax rates will automatically rise unless lawmakers intervene. The House version of the bill has already made some expiring TCJA provisions permanent, focusing on the individual rate cuts, the standard deduction, and the pass-through deduction. The Senate should expand this treatment to other pro-growth provisions such as equipment and R&D expensing.
EASIER SOLUTIONS TO RESOLVE THE FEDERAL DEBT CRISIS
The TCJA proved that less taxation fuels growth, empowers workers, and strengthens communities. Congress has a chance to defend that legacy — not with more government overreach, but by trusting people with their own money.
The opportunity to put the country on the path to long-term growth and prosperity doesn’t come often. Senators should listen to their constituents: make the tax cuts permanent, and let freedom flourish.
Patrick Fleenor is a tax policy fellow at Americans for Prosperity.