Southern West Virginia News

WASHINGTON, D.C. - On May 12, 2023, Congresswoman Carol Miller (R-WV) joined Congresswoman Michelle Steel (R-CA) in introducing the Permanent Tax Cuts for American Families Act with seven of their colleagues to make permanent the enhanced standard deduction established by the Tax Cuts and Job Act of 2017 (TCJA), which is set to expire in 2025. 

“The Tax Cuts and Jobs Act was revolutionary for the American taxpayer," said Congresswoman Miller. "As a member of the Ways and Means committee, it is my responsibility to make sure American families are able to save more and give the government less of their hard-earned money. The Permanent Tax Cuts for American Families Act will cement important tax cuts into law, ensuring stability for families across West Virginia."

“The enhanced standard deduction allows nearly 29 million more households to streamline their tax filing process and increase their tax-free income earnings,” said Congresswoman Steel. “I have always been a tax fighter and we need tax policies that will help hard working Americans. I am excited to work my colleagues to take up commonsense legislation to protect every American from excessive taxation that will allow them to keep more of their hard-earned income. I am eager to work on enhancing and making permanent many of the tax saving and pro-growth policies created by the TCJA.”

The TCJA nearly doubled the standard deduction, raising the return from $6,500 to $12,000 for individual filers, and from $13,000 to $24,000 for joint filers. By making the standard deduction larger, more Americans can avoid the hassle of itemizing.

For tax year 2023, the standard deduction for married couples filing jointly will be raised to $27,700 for joint filers and $13,850 for individual filers.  It is more advantageous and time saving for many filers to take the standard deduction than to itemize their deductions.

Click Here for full bill text    

Background:

• Joining Representatives Miller and Steel are Representatives Adrian Smith (R-NE), David Kustoff (R-TN), Beth Van Duyne (R-TX) Brad Wenstrup (R-OH) Drew Ferguson (R-GA), Mike Kelly (R-PA), and Randy Feenstra (R-IA).
• The Joint Committee on Taxation estimated that nearly 30 million households found it more advantageous to take the standard deduction.  Now 88% of filers will use the standard deduction to complete their taxes.
• 91% of filers (approximately 130 million filers) used the standard deduction to complete their taxes in 2021.
• In addition, these changes are concentrated among low- and middle-income groups. The number of returns itemizing deductions fell by 75% for those with income between $20,000 and $30,000 and 74% for those with income between $30,000 and $40,000.

Original source can be found here.