Today, Congressman David Schweikert (AZ-06) introduced the Permanent Extension of Rate Cuts and Extension of National Tax Simplification (PERCENTS) Act. This legislation would make permanent key tax relief and simplification measures that were enacted in the historic 2017 Tax Cuts and Jobs Act (TCJA) legislation and is supported by many Ways and Means Committee Republicans.
"By making these key temporary tax cuts permanent, we will provide clarity to individuals and businesses filing their taxes in the coming years," said Rep. Schweikert. "These reforms are pro-worker, pro-small business and pro-simplification. It is imperative that we provide certainty in our tax code. These reforms will make our economy more prosperous and solidify the successes we've seen since passing TCJA."
The PERCENTS Act will rescue taxpayers by making key temporary reforms permanent:
Permanent Individual Tax Rate Reduction: Locking in the rate cuts encourages individuals to work and allows for workers to keep more of their paychecks, all while helping small businesses struggling to grow after the Pandemic.
Permanent Super-sized Standard Deduction: Taxpayers choose between itemizing a simple standard deduction or itemizing a series of more complex deductions with recordkeeping burdens. TCJA made choosing the standard deduction simpler by nearly doubling the standard deduction.
Permanent Alternative Minimum Tax (AMT) Relief: The AMT forces taxpayers to calculate their taxes under two different tax systems and usually pay a much higher amount. TCJA dramatically increased the AMT exemption so that only the most affluent taxpayers would be ensnared by the AMT.
Permanent Repeal of the "Pease" Limit on Itemized Deductions: Middle-income taxpayers who itemize deductions were often trapped by a stealth tax that would slash those deductions by up to 80% under a complex formula. TCJA temporarily suspended this arbitrary limit on the deductions related to gifts to charity, mortgage interest, medical expenses and even state and local taxes. This legislation permanently repeals that limit.