House Ways and Means Chairman Jason Smith (R-MO) said Thursday that Congress would extend President-elect Donald Trump’s tax cuts to help seniors living on Social Security, laying out one of many plans for the upcoming agenda for the Ways and Means Committee.
Reconciliation is a process in Congress through which lawmakers may expedite approval of legislation by circumventing the Senate’s 60-vote filibuster threshold.
A concern among older voters is that many live on a fixed income and the social security tax is a high price to pay.
Smith said:
In regards to the Social Security tax, it cannot be in reconciliation under the law.
Further:
Social Security is not allowed to be there.
And:
There was an alternative to helping seniors with the burden of a high social security tax.
Smith explained:
We can use the tax code in a way to help reduce the taxes that seniors pay.
Seniors have not seen any increase on the thresholds for their taxation. In the early 1980s it was $25,000 per person [and] $32,000 for a married couple. There was a marriage penalty. In fact, that has not changed in 40 years.
He added that inflation has also significantly contributed to the problem:
Inflation has gone up a lot in 40 years, so we’re going to have to figure out ways of helping address and help those seniors who have been wrongfully served for 40 years.
Smith said:
[T]he Ways and Means Committee is taking steps to get legislation through as soon as Trump takes office.
Further:
I’ll tell you the Ways and Means Committee is ready on day one in the next Congress, but we’re going to continue to work the next two months to make sure all of our ducks in a row.
And:
[T]here has to be a budget passed before reconciliation can take place, but that will occur in another committee.
One of Trump’s campaign promises that he ran on was “no tax on tips” and Smith said:
[O]ne of the priorities of the Ways and Means Committee is going to make sure that legislation passes.
Further:
Whenever we pass our tax legislation….I have said that there will not be a tax bill that will leave the House of Representatives that does not have that ‘no tax on tips.
And:
It’s in the Republican Party platform.
Smith explained:
‘No tax on tips’ will be in the tax bill early next year and it is a big priority for Trump.
Further:
I will not allow a $7 trillion tax increase on small businesses.
Every single American will face a tax increase if Congress does not do their job, and I’m not going to allow that to happen under my watch.
God speed to the Congress and the Trump-Vance team.
