Working Parents Need Tax Relief, Not Biden’s $7 Trillion Tax Hike

April 15, 2024 - Blog - Press Releases - Select Revenue Measures

"The Tax Relief for American Families and Workers Act - legislation that passed the House of Representatives earlier this year with broad bipartisan support - will allow working parents to keep more of their hard-earned dollars."

WASHINGTON, D.C. - House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement to mark "Tax Day" - the annual IRS deadline for Americans to file their federal taxes:

"After emptying their bank accounts to cover gas and grocery bills thanks to the over 19 percent increase in prices since President Biden took office, Americans want tax relief. Unfortunately, if President Biden and Washington Democrats get their way, Americans will face the largest tax hike in American history. In fact, the president has called for a $7 trillion tax increase on working families in his most recent budget. Owners of small Mom-and-Pop stores will have to pay taxes so high it will threaten the survival of their businesses. On the other hand, the Tax Relief for American Families and Workers Act - legislation that passed the House of Representatives earlier this year with broad bipartisan support - will allow working parents to keep more of their hard-earned dollars. Congress must focus on helping Americans hammered by Bidenflation, take care of their families, and the Senate must act to send that bill to the President's desk."

"The Biden Administration is not content to just take more from families. The IRS is also hard at work standing up a new direct e-file program that will make the IRS the American people's tax preparer, filer, and auditor. Scandal after scandal has destroyed the American people's trust in the agency. Americans don't want to hand total control of their taxes and confidential information over to an agency bent on increasing audits on taxpayers earning less than $75,000. The direct file program is a way to expand the power of the IRS that no one asked for."

Trump-Era Child Tax Credit (CTC) Returns More Money to More Families

The pro-work, pro-family Child Tax Credit (CTC) in the Tax Relief for American Families and Workers Act builds on and expands the Trump-era Child Tax Credit:

• The Trump-era credit doubled the CTC from $1,000 to $2,000.
• The CTC in the Tax Relief for American Families and Workers Act indexes the credit to inflation to help families struggling with high prices.
• The billeliminates the existing penalty on large families, giving them relief after three years and counting of skyrocketing prices.
• Studies from multiple respected economists have found that the Child Tax Credit provisions of the Tax Relief for American Families and Workers Act would actually encourage more parents to work.

Direct E-File Program Makes IRS the Tax Preparer, Filer, and Auditor

This tax season, the IRS launched its own direct e-file program, the next step in Democrats' quest to give the IRS complete control over Americans' taxes.

• Compete with Free, Private Options: Americans making less than $73,000 already can file their taxes for free.
• Supercharge the IRS: Democrats gave the IRS $80 billion to increase audits on working-class families, meaning families whose returns are prepared by the IRS will have to rely on IRS data to fight their audit.
• No Support: Survey shows that a majority of Americans are opposed to the IRS becoming both the tax filer and preparer.
• Bipartisan Opposition: Former Obama-Biden Administration Chief Information Officer wrote that this e-file system is "virtually guaranteed to fail."