WASHINGTON, D.C. (IRN) — A congressman from Illinois has filed legislation to make last winter’s federal tax cuts permanent.
The personal tax cuts passed as part of tax reform are set to sunset in 2025. U.S. Rep. Rodney Davis filed legislation Monday that would make them permanent.
The lower rates, the higher standard deduction, child tax credit, and other provisions would all become permanent under Davis’ bill.
The bill, he said, is an opportunity for Democrats in the Senate to support tax relief for working Americans.
“This is their chance to put their votes where their rhetoric was,” he said. “We must continue to build on the historic tax relief for the millions of Americans who need it the most by making the individual rates permanent.”
Illinois residents save an average of $2,300 annually under the cuts, according to the Heritage Foundation.
The Tax Foundation, a Washington-based nonprofit, estimates that making the tax cuts permanent would lead to real growth and create more than a million jobs over time, but warned that lawmakers need to watch the deficit.
“It would be about $166 billion on an annual basis,” analyst Robert Bellafiore said. “Policymakers are going to have to decide on this issue whether the benefits outweigh the cost.”
Like Davis, Bellafiore said the expected growth in the economy, thus more tax receipts, would partially cover the cost of the tax cuts on the federal ledger.
Davis filed a similar bill in January that has yet to be voted on in committee.