Congress Must Prioritize American Business by Extending Tax Cuts & Reducing Business Regulations
One of President Donald Trump’s top campaign promises was to open the floodgates for businesses to thrive in the U.S. economy once again. The best way to deliver on that promise is to protect existing tax rates, reduce burdensome regulations for businesses, and ensure working-class Americans can prosper.
Our leaders in Washington should prioritize putting American businesses and consumers back at the forefront of the U.S. economic agenda. Congress has a crucial opportunity this year to extend the Tax Cuts and Jobs Act (TCJA), and President Trump has vowed to roll back regulatory roadblocks for businesses to help further reduce prices, grow the economy, and fight inflation.
Larry Kudlow, President Trump’s former director of the National Economic Council, echoed this sentiment last week, saying, “I would’ve preferred a different sequence. I would’ve said get your tax cuts done first and then go for the tariffs. The tax cuts really give people some monetary torque, as I say … In the first term, the tax cuts came first, and then the tariffs came, and I wish that they had to sequence the same this time around.”
Recent insights from President Trump’s political pollster found that a majority of Trump voters and swing voters support extending the TCJA. Extending the tax cuts now is an easy win for American businesses and families fighting rising costs. It would lead to a 1.8% increase in gross domestic product (GDP) and the creation of 829,000 full-time jobs.
Stephen Moore, a former economic advisor to President Trump, recently said on extending the TCJA, “Because of the recent weakness in the economy and the jitteriness of the stock market … the sooner that this can get done, the better.”
The TCJA ensures the United States is the best place to start a business, expand and achieve success.
Small business optimism was at a high point at the start of this year. The National Federation of Independent Business (NFIB) reported in November 2024 that small business owners “are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures.” This reflects a larger mandate from the American people to enact meaningful policies that will reduce costs and make household items more affordable.
Businesses in recent years have faced never-ending red tape and regulations that hinder operations. Main Street businesses will face a 43.4% tax rate, on top of other regulations stunting economic growth, if the TCJA is not extended. Now is the time for the federal government to be a supportive partner and allow them to do what they do best: create jobs and boost our economy.
Not extending these key tax rates will negatively impact American families at the worst time. Without the extension, the average family of four making $75,000 will see their taxes increase by $1,500. Prices continue to rise for everyday goods that families rely on, and consumer confidence is dropping significantly as we go further without this critical extension.
American households need relief, and higher taxes will only increase their financial burden.
Three months into 2025, businesses continue to be strained by burdensome regulations and inflation continues to rise. Tariffs are not answering the call that Americans made to address high prices and promote economic growth. America’s economy is only as successful as its working-class. It’s time to enact policies that put them first.
Congress must take action now.
