To the editor:
Residents of southeast Missouri are no strangers to the challenges of making ends meet. The "Tax Relief for American Families and Workers Act of 2024" (H.R. 7024) has been a hot topic, and there's a lot to unpack about how it impacts our families and local businesses. While there are commendable aspects of this legislation, it also raises concerns that we shouldn’t overlook.
H.R. 7024 proposes retroactive tax relief for businesses. Businesses can get immediate write-offs for business expenses dating back to 2022, including research and development (R&D) costs. This is huge. It’s a reversal from the 2017 "Tax Cut and Jobs Act," which forced businesses to spread the write-offs over several years. But what about our families? The Child Tax Credit (CTC) portion of the bill offers no such retroactive benefit. In challenging times, every bit helps, and our families deserve equal consideration.
Also, there’s a time-bomb in this bill. The changes to business expenses as well as the much-needed CTC expires after 2025. This "time bomb" approach seems designed more to influence future election outcomes than to provide long-term economic stability.
Finally, H.R. 7024's financing raises eyebrows. To pay for everything, it reallocates funds from the Covid-era Employee Retention Tax Credit (ERTC) program. We question the legitimacy of reallocating ERTC funds to H.R. 7024. Further, the bill claims that over $60 billion can be recovered through enhanced fraud enforcement related to ERTC. Is this even practical? When we tried to investigate the assumptions and risks that went into these calculations, we ran into a stone wall at the Joint Committee on Taxation (JCT), a bipartisan committee that calculates how bills will affect finances. This lack of transparency raises our suspicions because Representative Jason Smith, who sponsors this bill, chairs both the JCT and the House Ways and Means Committee. We feel that Representative Smith’s multiple roles in crafting this bill need to be questioned.
As working-class Americans, we need policies that offer sustainable support, not temporary fixes or political maneuvers. While H.R. 7024 has its good points, particularly for businesses, it falls short of providing equitable and enduring relief for families. As constituents, we must voice our concerns and advocate for legislation that truly addresses our needs for the long term and ensures a prosperous future for all Missourians.
Editor’s note: Roth is a candidate running for Missouri’s 8th District, U.S. House of Representatives. Filing for the Aug. 6 primary election ends March 26.
