By Jason Smith, member of Congress
On May 22, House Republicans took an important step toward delivering lasting tax relief to the American people by passing President Trump’s One, Big, Beautiful Bill. The bill, which now awaits consideration by the Senate, is packed full of America First tax reforms that reward hard work, bring jobs back home, expand opportunity, and most importantly, rebuild the American economy for hardworking families across our nation.
As the Chairman of the Ways and Means Committee, I worked with my fellow committee members to write the tax provisions in The One, Big, Beautiful Bill. We made sure that the policies in the bill put farmers, ranchers, small businesses, seniors, and working families first. Not only does the legislation lock in the successful 2017 Trump tax cuts, it also builds on that foundation with bold, pro-growth reforms that will directly benefit the hardworking folks of southeast and south-central Missouri.
Under The One, Big, Beautiful Bill, families will be protected from a $1,700 tax hike and instead receive a $1,300 tax cut. The average household would see up to a $13,000 increase in their take-home pay. It increases the Child Tax Credit, which benefits more than 70,000 families in Missouri’s 8th Congressional District. In addition, the bill locks in the doubled guaranteed standard deduction from the 2017 Trump tax cuts and enhances it, giving additional relief to 94 percent of taxpayers in Missouri’s 8th Congressional District.
But that’s not all: every newborn child would receive a Trump savings account to prepare for their futures, and adoptive families would receive partial refundability of the Adoption Tax Credit. Republicans’ pro-growth and pro-family agenda will create more jobs with bigger paychecks.
The One, Big, Beautiful Bill also delivers on President Trump’s promise of no tax on tips, overtime pay, and car loan interest. Americans working overtime get up to $1,750 more in their pocket under this bill, and those working for tips get $1,700. For example, a single mom with two children and working as a waitress would receive a $3,410 tax cut starting next year as compared to what she pays today, in part from the increased Child Tax Credit and no taxes on tips and overtime. President Trump’s no tax on tips and overtime, combined with permanently lower tax rates and a doubled standard deduction, will help working-class folks afford the roof over their head, feed their families, and build their financial security.
With this bill, Republicans are keeping President Trump’s promise to help seniors afford their cost of living through an expanded senior deduction. Each senior will receive an additional bonus of $4,000 to the standard deduction. This would help low- and middle-income seniors like my aunt who worked as a Walmart greeter to supplement her Social Security check. By keeping his promise to help seniors, President Trump is ensuring millions more Americans will be able to afford groceries, cover the cost of medications, and enjoy a dignified retirement.
As a rancher and small business owner, I know how important it is to have good tax policy. That’s why I made sure that The One, Big, Beautiful Bill includes several provisions that would make a real difference for farmers, ranchers, and small businesses – the men and women who drive the economy in southeast and south-central Missouri. The bill is projected to lower taxes on farmers by a whopping $10 billion. It makes permanent and increases the doubled Death Tax exemption to help ensure family farms, ranches, and other small businesses can be passed down to the next generation. Additionally, the legislation increases and makes permanent the small business deduction, extends 100% immediate expensing, doubles small business expensing – one-fifth of which is utilized by the American agriculture industry – and provides for immediate expensing for new buildings and other structures used in agriculture and farming.
With this bill, Republicans have an historic opportunity to deliver much-needed tax relief to millions of hardworking Americans. President Donald Trump has been crystal clear about what he wanted Congress to deliver. The House of Representatives has done its job; it’s now time for the Senate to act. I will do everything I can to get this pro-growth, pro-worker, pro-family, and pro-small business legislation to the president’s desk.