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Guest Columnist – Renewing tax cuts is an easy win for everyone

Renewing tax cuts is an easy win for everyone Renovar los recortes fiscales es una victoria fácil para todos

The opinions, beliefs and viewpoints expressed by our guest columnists do not reflect the opinions, beliefs and viewpoints of this publication.

By Angel Merlos

The strategic director for The LIBRE Initiative in Colorado

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As anyone who has to balance a monthly budget, especially for a family with multiple mouths to feed, is well aware, prices have steadily climbed for years on end. Since January 2021, inflation has driven costs of everyday life sky-high. In Colorado, we’ve paid an average $1,300 more per month for regular goods and services; that equals out to more than $43,000 in additional costs.

No doubt you already know this as you’ve watched the price of gas, groceries, and other staples skyrocket. At the same time, real wages have decreased as compared to mid-year 2020. Thanks to the legacy of “Bidenomics” Latino families are facing the highest cost of living increase in a generation. So what can be done about it?

Caraveo falló al no reducir factura de electricidad de Colorado

The 2017 cuts

While there are numerous reforms that could help ease the cost-of-living crisis, one of the most urgent, and simple, ways that Congress can assist struggling families is to renew President Trump’s Tax Cuts and Jobs Act tax cuts that are set to expire this year. Signed into law in 2017, these cuts saved the average family of four nearly $2,000 each year.

While these savings unfortunately do not balance out the cost of inflation, they have played a vital role in helping struggling Coloradans keep food on the table and the bills paid. If allowed to expire, Coloradans are in for a tax hike to pre-2017 levels, the largest tax increase in our history in the middle of an already painful cost of living crisis where Americans are making less and everything costs more.

Impact on families

The average Colorado family is looking at a hike of more than $3,600. Not only would a failure to renew these cuts lead to more direct taxes for Coloradans, but it would also lead to increased taxes on the vital businesses that employ millions of Coloradans, leading to an estimated job loss of over 19,000 jobs in Colorado alone.

In total, at least 72% of Latino owned businesses would experience a tax hike. Many businesses will be forced to slow hiring and trim their workforce to afford the tax hikes.On top of this, many businesses would need to raise the prices of their goods and services to ensure they are making enough money to keep the lights on, meaning Coloradans will have less money, high taxes, and higher prices hitting us all at once.

Key electoral issue

If the tax cuts expire and these fiscal hardships hit us all at once, there may be no way back for the economy and the American Dream. We here in Colorado understand what’s at stake, as do our fellow Americans across the country. The economy was a chief issue in the November election, and Biden’s policies that drove record inflation fueled Americans at the polls.

We may think we’re divided politically, but on the issue of taxes, the majority of Americans are in agreement with 76% of voters agreeing now is a bad time to raise taxes. That 76% includes Democrats, Republicans, and Independents. A sweeping 90% believe that Congress should keep tax rates where they are rather than raise them.

Extending or making permanent the 2017 tax cuts is a win all around. Families will continue to keep their hard-earned dollars, businesses will have money to continue investing in labor growth, and our political leaders can secure a popular and bipartisan policy that benefits everyone.