Josh Hawley Proposes 'Historic' Tax Cuts For Americans Earning Below $80K Annually: 'Republicans Should Fix This Now'

 U.S. Senator Josh Hawley (R-Mo.) has put forth a proposal for a substantial tax cut aimed at working-class Americans.

What Happened: Hawley’s proposal aims to make standard income tax breaks refundable against payroll taxes, potentially leading to a “historic” tax reduction for working families across the country. This initiative comes amid a time of high living costs and widespread financial hardship.

The proposed tax cut targets those earning less than $80,000 annually, a group Hawley believes has been largely neglected in Washington policy debates for years. He asserts that these are the Americans most in need of tax cuts.

In an op-ed column on The Washington Post, also detailed on Hawley’s Senate page, the Senator wrote, “The negotiations over President Donald Trump's "big, beautiful" budget bill have to date included surprisingly little talk of tax cuts for the people who need them most: America's working class.”

Hawley proposes extending the largest income tax credits—the home mortgage deduction, the child tax credit, and the charitable deduction—to all Americans who pay payroll taxes. Currently, these credits are fully available only to those with high earnings and substantial income tax payments.

Hawley highlights that two-thirds of Americans pay more in payroll taxes than in income taxes. His proposal would allow these individuals to claim tax credits to reduce their tax liability, potentially saving them thousands of dollars each year.

“America's working people pay billions in taxes every year — but mostly in payroll taxes, the 15 percent levied on every paycheck and sometimes split with employers. And that's no small burden. In fact, the federal government takes in well over $1 trillion of this tax every year,” points out Hawley. “Republicans should fix this now,” urged the senator.

Why It Matters: This proposal comes in the wake of discussions within the Trump administration about a potential tax increase for the wealthiest Americans. The proposed tax hike for the ultra-wealthy was seen as a strategic move to fund other policy priorities and counter criticisms from Democrats looking to extend President Donald Trump’s 2017 tax cuts.

Senator Hawley's proposal also aligns with ongoing Republican efforts to expand tax relief for low-income Americans, particularly tipped workers and seniors on fixed incomes. It follows Trump's recent call to Congress to make tipped income and Social Security benefits tax-exempt.

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