By Congressman Mike Simpson | Originally published at Idaho State Journal
As President Donald Trump prepares to deliver his State of the Union address, one thing is clear – the state of our union is strong because America’s economic comeback is underway.
Under President Joe Biden’s leadership, hope and optimism were at a low. Record inflation and high prices had become the norm. I spoke with Idaho families living paycheck to paycheck, seniors on fixed incomes, and parents who wondered whether they could afford school supplies. Americans nationwide bore the brunt of President Biden’s failed policies, and economic confidence was diminishing.
That changed when voters sent President Trump back to the White House to revive the United States economy, restore American prosperity, and bring back the American Dream.
In the past thirteen months, Republicans in Congress have worked alongside the President to deliver on that promise. We’ve passed legislation to strengthen border security, support our military and veterans, unleash American energy production, and — most importantly for working families — passed the largest tax cut in American history through the Working Families Tax Cuts.
Working-and middle-class Americans were severely impacted by Biden’s out-of-touch economic policies. President Trump and Republicans have worked together to deliver policies that benefit those who felt forgotten under President Biden and to make everyday life more affordable again.
For senior citizens, we eliminated the unfair double taxation of Social Security benefits. Nearly 90 percent of seniors who receive Social Security will pay zero tax on their benefits. In Idaho alone, roughly 300,000 seniors could benefit from this provision.
Thanks to this landmark legislation, hardworking Idahoans will keep more of their hard-earned money and save more on taxes. For instance, Idaho wages are estimated to rise by $3,600 to $6,400 over the next four years, and a typical Idaho family with two children could see their take-home pay increase between $7,200 and $10,200 compared to what it would have been had this bill not been enacted.
Millions of taxpayers report tips and overtime income on their tax returns each year. To support working Americans, we eliminated federal taxes on tips and overtime. In Idaho, about 24 percent of workers regularly earn overtime pay, and nearly 5 percent work in tip-based occupations. This means more money in Idahoans’ paychecks this tax season.
We also secured a $10,000 deduction on auto loan interest for vehicles made in America, providing Americans with financial breathing room and strengthening American manufacturing. Furthermore, we honored our promise to America’s farmers, ranchers, and family business owners by permanently increasing the exemption for the burdensome death tax.
I’m not finished yet. The Working Families Tax Cuts expands opportunity zones, helping protect thousands of Idaho jobs while promoting continued housing development. It also extends the 199A pass-through deduction, benefiting 41,000 Idaho small businesses. This means that around 45% of all firms in the Gem State are eligible for the deduction.
In addition to permanently increasing the Child Tax Credit, one of the most consequential and exciting provisions in the Working Families Tax Cuts is the creation of the new “Trump Accounts.” These accounts provide a $1,000 investment for American children born after January 1, 2025, through December 31, 2028, helping to set future generations up for financial success.
I have often said that the Working Families Tax Cuts may have been the most important vote I’ve cast since coming to Congress. I say this because the working families, seniors, farmers, and ranchers I spoke to under the Biden administration will see and feel the difference. Policies matter.
It’s worth noting that every single Democrat voted against this economic relief laid out above — against eliminating taxes on tips and overtime, against tax relief for seniors, and against increasing take-home pay for working families.
Like many Americans, I am optimistic about the direction our country is heading. While we gather to watch President Trump’s State of the Union address, we can sit back, relax, and feel confident that economic certainty and relief are on the way.
About Mike Simpson
An Idaho native, Mike Simpson was born in Burley and raised in Blackfoot. His political career began in 1980, when he was elected to the Blackfoot City Council. In 1984, he was elected to the Idaho Legislature where he served until 1998, the last six years serving as Speaker. Mike is currently serving his fourteenth term in the House of Representatives for Idaho’s second congressional district. Visit https://simpson.house.gov/ to learn more or find contact info.
