WASHINGTON, D.C. — Senate Finance Committee Chairman Mike Crapo (R-Idaho) issued a statement Saturday following the release of the Joint Committee on Taxation’s (JCT) analysis of the Finance Committee’s tax legislation. The JCT estimates the bill would have a net revenue impact of $442 billion under a current policy baseline.
According to Crapo, the estimate accounts for the continuation of existing tax policies rather than introducing new tax increases. He stated that the proposal would extend provisions from the 2017 Tax Cuts and Jobs Act, aiming to prevent what he called a $4 trillion tax increase.
Crapo said the legislation includes tax relief measures targeting middle- and low-income households. Citing JCT figures, the proposal would provide $82 billion in inflation relief to individuals earning under $200,000, a $165 billion benefit for those claiming the standard deduction, $91 billion for seniors, and $124 billion in additional investment for families with children. The plan also includes provisions to exclude taxes on tips and overtime income.
To offset these changes, Crapo said the bill would eliminate spending associated with federal climate programs, which he referred to as part of the “Biden Green New Deal.” He also cited an estimate from the Council of Economic Advisers claiming that extending the 2017 tax cuts and related policies could increase federal revenues by over $4 trillion in the long term.
The full JCT report and legislative text are available on the Senate Finance Committee’s website.
