Veterans served to preserve the freedoms that allow you to pursue your American Dream. But recent sky-high inflation and a weak economy threaten those freedoms.
Why? Because a strong economy is necessary for our nation’s safety and security.
According to John Byrnes, strategic director for Concerned Veterans for America, “A strong economy requires a pro-growth tax policy.”
Our nation has rarely been stronger than it was after enacting the Tax Cuts and Jobs Act of 2017 — the Trump tax cuts.
But key provisions of the Trump tax cuts are set to expire at the end of this year.
Without swift congressional action, millions of Americans will see their taxes rise sharply, small businesses will struggle, and the economy as a whole will suffer a devastating blow.
Strength through growth
The TCJA added an estimated $12 trillion to the American economy. This kind of economic growth is essential to the nation’s security.
The simple truth is that a nation struggling economically will not be able to afford the military it needs to defend itself or have the economic weight to be internationally competitive. America has been able to maintain its status as the strongest military power only because it first built the economic resources to do so.
America needs strong, financially stable families and small businesses at home to protect its interests abroad. By increasing employment, output, wages, and investment, the TCJA delivered real gains to economic security.
Let’s look at how the TCJA did that.
Defending the American family
The TCJA lowered taxes across all income levels. The average family of four is saving $1,500, real wages and salaries rose by an estimated $3.6 trillion above pre-TCJA projections, and the U.S. economy added over 5 million jobs.
Those economic benefits were important when the tax cuts passed, but they have become even more critical in recent years. During the Biden administration, prices surged more than 20%, leaving middle-class families shelling out an extra $1,000 a month just to keep up with the cost of living.
Many families, including military families, need those tax savings and wage increases to make ends meet.
When American families thrive, the nation prospers, enabling it to invest in defending the conditions that enable that prosperity.
Helping small businesses drive prosperity
Small businesses, notably the roughly 2 million veteran-led firms, can’t afford a harsh tax hike right now.
Not only did the TCJA keep employment costs in check through personal income tax cuts, it also offered a 20% deduction for “pass-through entities” — the most common type of small business.
This increased reinvestment and job creation, strengthening local economies. That’s not just theoretical, either. Research shows that on average, firms impacted by the policy changes increased investment in the American economy by 20%.
Small businesses are the backbone of the American economy. When they succeed, the nation becomes a larger economic presence in the world, providing the means to maintain peace.
What about the debt?
Critics of the tax cuts often point to debt concerns — and they have a point.
At over $36 trillion and climbing, federal debt is a serious problem.
But the way to overcome it is to cut government spending and simplify the tax code while growing the economy. Draining the U.S. of its productive capability through tax hikes is not the path forward.
Urgent action is required
If Congress fails to act, the TCJA’s expiration could place heavy burdens on families, crush small businesses, and threaten American economic security.
Public support for these tax cuts is overwhelming, with 90% of Americans favoring their continuation. CVA stands with the American public and calls on Congress to act.
You can stand with us too. Sign CVA’s letter to Congress today and urge your representatives to extend the Trump tax cuts.