Why Is This Tax Cut Expiring?!

One of the best ways to keep more money from our Paychecks is to make sure it’s never taken out in the first place. That’s right, we’re talking about our old friend: tax cuts! Sure, it’s a tired old cliche for politicians to make promises about, but the reality is that the more we get taxed, the smaller our Paychecks get. So, when we actually get a tax cut, we really don’t want to see it go away!

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Here are Five Fast Facts on the end of a tax cut:

1. 🪓 The Cut - Back in 2017, the Tax Cuts and Jobs Act (TCJA) was passed by the Trump administration. It chopped corporate tax from 35% to 21% and provided a 20% deduction for some businesses. That meant businesses had a lot more cash left in their pockets so they could invest in new technology, expansions, more hiring, or whatever they needed. All good things, all good things!

2. 🤯 The Expiration - The 20% TCJA business deduction is set to expire in 2025 if Congress doesn’t either extend it or make it permanent. Wait, what?? Why would they even consider NOT doing that?

3. 💰 The Dollars - This deduction has brought in about $4.7 billion in revenue for the state since it was enacted. So the state wins, too - where’s the downside?

4. 🏭 The Impact - This is a big, big deal for Michigan! The deduction applies specifically to “pass through entities,” which includes small and medium sized manufacturers. Over half of all workers in Michigan would be affected by this expiration. Your Paychecks will be on a forced diet. Lucky you!

5. 👍 The Solution - The Main Street Tax Certainty Act is a new bill that has been proposed this year that would make that deduction permanent. Seems like a no brainer to us.

🔥Bottom line: We get it, a lot of people hate Trump. Everyone gets their opinion. But seriously, when any President puts more money in your Paycheck, isn’t that a good thing? And don’t we want that to continue? So if you would prefer this tax cut be made permanent, the best thing you can do is to contact your elected representatives and urge them to support the Main Street Tax Certainty Act. And if you don’t…well, then contact them and tell them that, too. The point is to get informed and engage with the political process! We think one thing we can all agree on is that we want our Paychecks to be as big as possible.

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What do you think about this tax cut?

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