State Lawmakers to Congress: Make the Tax Cuts and Jobs Act of 2017 Permanent – American Legislative Exchange Council

Arlington, VA – Today, members of the American Legislative Exchange Council (ALEC) will visit Capitol Hill to deliver a letter signed by more than 330 state legislators from 42 states*, highlighting the benefits of permanently extending the Tax Cuts and Jobs Act of 2017. As key TCJA provisions approach their expiration at the end of 2025, the ALEC letter underscores the necessity of these measures to protect American taxpayers, bolster economic growth, and sustain the nation’s global competitiveness.

Read the letter here.

ALEC CEO Lisa B. Nelson emphasized the significance of the TCJA: “With leaders from across the nation, we stand united in support of the economic expansion and entrepreneurial revitalization fostered by the TCJA. As American taxpayers grapple with the repercussions of current economic policies, we urge Congress to transcend partisan divides and prioritize the welfare of the American people.”

Signed into law by President Trump in 2017, the TCJA resulted in a $1.5 trillion net tax cut, followed by historically low unemployment rates, an increase in business investment, and a $6,000 increase in real median household income over two years – which included scores of raises and bonuses for workers immediately after the tax cuts were adopted.

ALEC National Chair and Kansas Senate President Ty Masterson highlighted the impact on Americans: “Every day, hardworking Americans face the challenges of paying bills, buying groceries, and securing shelter. Allowing the TCJA to expire exacerbates these difficulties, making financial stability increasingly elusive. It’s imperative that lawmakers at all levels recognize the profound positive impact these tax cuts have had on our families, homes, and lives.”

Over 100 million American taxpayers experienced meaningful tax relief – especially middle and working-class American taxpayers.

View the list of signers here.

“The 2017 Trump tax cuts boosted wages by nearly five percent and drove down unemployment and poverty to the lowest levels in 50 years,” said House Committee on Ways and Means Chairman Jason Smith (MO-08). “It gave job creators on Main Street the opportunity to invest in their small businesses and provided workers the support they needed to make ends meet and provide for their families. At a time when Americans have seen prices skyrocket and higher interest rates, the last thing they need is for Washington to take more money out of their pockets. Policymakers must hear directly from those who live and work in our communities – as the Ways and Means Committee has been doing in hearings we’ve held across the country. This will ensure that we build on the success of the Trump tax cuts so working families and small businesses are not struck by a massive tax increase next year but can instead focus on creating a more vibrant and prosperous future for their communities.”

In 2022, ALEC members approved a model resolution urging the permanent extension of TCJA. The resolution noted that a return to the unlimited state and local tax (SALT) deduction would encourage states to implement higher taxes and increase spending.

ALEC EVP of Policy & Chief Economist Jonathan Williams discussed the impact the TCJA has on states: “Hard-working American taxpayers received a second windfall from the federal Tax Cuts and Jobs Act at the state level, as dozens of states rightly followed the successful federal effort with record tax cuts of their own. Allowing the TCJA to expire would create a massive challenge for state budgets – and more importantly, state taxpayers.”

^{*as of 05/23/24, 352 state legislators from 43 states have signed the letter}