eNewsletter

The Truth on Taxes

Washington, February 10, 2025

Hello friends,

House Republicans are committed to getting wages climbing faster than inflation and dealing with the federal debt crisis. I was a part of the House GOP Leaders meeting with President Trump on Feb. 6 and believe we have made some progress but expect some more work to come.

We need to extend the Tax Cuts and Jobs Act (TCJA), because tax rates will go up across the board if the TCJA is not extended:

  • Standard deduction for single filers will go down from $14,600 (TCJA) to $8,300.
  • Standard deduction for joint filers will go down from $29,200 (TCJA) to $16,600.
  • The Child Tax Credit will decrease from $2,000 (TCJA) to $1,000 per qualifying child.
  • How 2026 tax rates will rise if TCJA expires:

Bracket

Rates Under TCJA

Rates if TCJA Expires

1

10%

10%

2

12%

15%

3

22%

25%

4

24%

28%

5

32%

33%

6

35%

35%

7

37%

39.60%

https://about.bgov.com/insights/elections/2025-tax-policy-crossroads-what-will-happen-when-the-tcja-expires/#which-tcja-individual-tax-provisions-are-set-to-expire

https://taxfoundation.org/blog/2026-tax-brackets-tax-cuts-and-jobs-act-expires/

In addition, I have introduced five tax bills to help reduce the burden on Americans and their families.

H.R. 561: Overtime Pay Tax Relief Act of 2025: This bill would amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.

H.R. 560: Second Job Tax Relief Act of 2025: This bill would amend the Internal Revenue Code of 1986 to exclude compensation from secondary employment for certain taxpayers from the income tax and payroll taxes.

H.R. 559: Seniors in the Workforce Tax Relief Act: This bill would amend the Internal Revenue Code of 1986 to establish an above-the-line tax deduction for seniors

H.R. 558: Tip Tax Termination Act: This bill would amend the Internal Revenue Code of 1986 to provide that certain tips shall not be subject to income taxes for a period of 5 years.

H.R. 557: Working Class Bonus Tax Relief Act of 2025: This bill would amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts received as a bonus.

You can read more about those bills here.

Rest assured that as a conference, Republicans are committed to easing the burden of American families. Many of us have different ideas, but we will come together for the good of the American people.

As always, it is a pleasure to serve the 2nd District of Nebraska. If you have a question, concern, comment or need help with a federal agency, don’t hesitate to reach out. https://bacon.house.gov/contact/

Sincerely,

Rep. Don Bacon

Member of Congress