President Donald Trump’s approach to economic growth relies on a multifaceted approach that includes reducing wasteful federal spending, placing tariffs on foreign goods, and perhaps most significantly, extending the sweeping slate of tax cuts he implemented in his first term for all Americans.
Those tax cuts, which Americans have been benefiting from for the past seven years, are set to expire unless Congress acts to extend them, and President Trump is working overtime to ensure they remain in place.
The president’s approach to economic growth also relies heavily on auditing the federal government and eliminating wasteful and fraudulent spending. Trump has been persistently working to audit the federal government with the help of the Department of Government Efficiency (DOGE) team, showing every attempt to offset the cost of tax cuts for American families.
On March 10, Trump also signaled his support for a continuing resolution that would freeze discretionary spending but continue to fund the government through Sept. 30, 2025.
Trump’s focus on reducing federal spending while slashing taxes is wildly popular among the public, with close to two-thirds of voters favoring extending his tax cuts and Americans saying by 45 points the federal government should reduce spending according to recent YouGov data.
Here is what’s at stake. The Tax Cuts and Jobs Act, which Trump heavily pushed for and signed into law in 2017, slashed corporate taxes from 35% to 21%, and delivered one of the most robust economies in modern history during Trump’s first term.
Trump’s tax cuts also drastically slashed the tax rate for small businesses and independent contractors by including a “pass through deduction” that allowed middle-class self-employed individuals to deduct 20 percent of qualified business income.
Under the pass-through deduction, the effective top individual tax rate on business income was slashed from 37 percent to 29.6 percent, a massive victory for small businesses.
Individuals and families also saw their tax rates drop. While the lowest tax rate remained at 10 percent, the middle-income tax rates dropped between one and four percent – offering middle-class families substantial savings.
The Trump tax cuts also nearly doubled the standard deductions for individuals and families, raising the deduction for individuals from $6,500 to $12,000 and for families from $13,000 to $24,000.
However, the cuts are on the chopping block to expire at the end of this year if Congress doesn’t act to extend them.
YouGov polling shows that close to two-thirds of Americans want the president and Congress to extend Trump’s tax cuts, with Americans saying 62 percent to 38 percent Congress should act to renew the tax cuts.
There is broad bipartisan support for extending Trump’s tax cuts, although Democrats oppose extending them by 22 points. Independents support extending Trump’s tax cuts by 20 points, 60 percent to 40 percent, and Republicans support extending the tax cuts by 72 points, 86 percent to 14 percent. While a majority of Democrats reject extending Trump’s Tax cuts – 61 percent – a full 39 percent of Democrats also support extending Trump’s tax cuts.
Americans also strongly support Trumps efforts to offset the tax cuts with a reduction in wasteful federal spending. By a broad 45-point margin – 60 percent to 15 percent – Americans say the federal government should decrease spending according to a comprehensive YouGov survey on the topic.
The largest share of Americans – 31 percent – say the federal government should decrease spending significantly according to the poll. A mere three percent of the public says the government should increase spending significantly.
Still, Democrats and the mainstream media have been quick to label Trump’s tax cuts a “hand out for the wealthy”, a statement that is challenged by the facts.
According to analysis from the House Ways and Means Committee, the Trump tax cuts significantly reduced taxes for low-income and middle-class taxpayers.
The Committee’s analysis shows that the bottom 20 percent of taxpayers saw their federal tax rate plummet to the lowest rate in 40 years. According to the analysis, the top one percent of wealthy earners actually paid more income than ever before under Trump’s tax cuts, or 45 percent of the tax burden.
While Democrats looking to block President Trump’s every move have been working to limit his federal spending freeze and label his tax cuts a handout to the wealthy, the American people are solidly in favor of extending Trump’s tax cuts and reducing federal spending.
Manzanita Miller is the senior political analyst at Americans for Limited Government Foundation.
Reproduced with permission. Original here: Trump’s Tax Cuts Benefited The Middle-Class And That Is Why Extending Them Is Wildly Popular
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