A Nebraska Congressman says it is time to make permanent the tax cuts which went into effect this year.
Congressman Adrian Smith says there have been some unexpected benefits from the tax reform measure Republicans pushed through Congress.
“But last January, February when companies saw that they were getting some reduction in taxes, they passed that along to their employees,” Smith tells Drive Time Lincoln on Nebraska Radio Network affiliate KLIN. “That’s how you grow an economy. That’s how you grow a business with consumer confidence and so many good things that can happen across an economy.”
Smith is a member of the House Ways and Means Committee, the tax-writing committee in the House.
Smith backs a measure passing the House which would make individual income tax cuts permanent. Those cuts along with the doubling of both the standard deduction and Child Tax Credit are set to expire in 2025.
The Republican tax reform measure that became law in January made a permanent cut to the corporate tax rate, bringing it down from 35% to 21%. It also cut individual income tax rates, yet those rates were not made permanent. The measure passing the House at the end of last month would make the individual cuts permanent as well.
Republicans also moved to make changes to tax law regarding retirement savings. Smith says too many people hesitate to increase their contributions to a 401k, because they fear they might need the money and cannot access it. The measure would give flexibility to 401k accounts, allowing withdrawals for major events without penalization.
Other provisions would encourage savings.
Small businesses would be able to pool resources to create retirement savings plans for their workers under the measure.
Democrats have criticized the tax bill as tilted toward wealthy Americans. They also charged it will continue to add to the national debt.
AUDIO: Brent Martin reports [:40]