Michigan Senators Peters and Slotkin urge bipartisan tax reform to reduce the deficit, keep costs down, and support middle-class families amid expiring TCJA provisions.
Michigan Leaders Push for Bipartisan Solutions Amid Tax Reform Debate
WASHINGTON, D.C.— Gary Peters and Elissa Slotkin, U.S. Senators representing Michigan, have called on Republican colleagues to engage in bipartisan efforts to address expiring provisions of the Tax Cuts and Jobs Act (TCJA) of 2017. The senators emphasize protecting Michigan families, small businesses, and the middle class while reducing unnecessary federal spending and addressing the growing deficit.
In a letter to Senate Majority Leader John Thune and Senate Finance Committee Chairman Mike Crapo, the Democratic lawmakers expressed their willingness to collaborate across party lines. “Bipartisan reforms, including targeted reductions in federal spending, can reduce deficit concerns while protecting low and middle-income Americans,” Peters and Slotkin wrote. “We stand ready to work with you in good faith to craft legislation that can achieve 60 votes in the Senate.”
Expiring Tax Provisions Create Financial Uncertainty
The TCJA, which introduced sweeping tax changes, is set to expire at the end of the year, leaving families and businesses facing potential financial uncertainty. According to the Congressional Budget Office (CBO), extending all TCJA provisions would add $4.6 trillion to the federal deficit over the next decade. Without bipartisan reform, the annual budget deficit could climb from $1.9 trillion in 2024 to $2.9 trillion by 2034.
Slotkin and Peters argue that failure to act responsibly could result in higher costs for Michigan families, increased borrowing expenses, and reduced government flexibility in addressing future economic or national security crises.
Prioritizing Middle-Class Relief and Fiscal Responsibility
The Michigan senators propose reforms that include:
- Extending the Child Tax Credit to support working families.
- Providing tax cuts for small businesses investing in research and development (R&D).
- Ensuring high earners and corporations pay their fair share.
They caution against a partisan approach, asserting that unilateral efforts to extend TCJA provisions without addressing spending reforms could exacerbate economic inequality and burden future generations.
CBO Projections and the Path to Reform
The CBO’s forecasts highlight the urgent need for comprehensive tax policy reform. While some Senate Republicans may favor using the budget reconciliation process for partisan extensions, Peters and Slotkin advocate for bipartisan collaboration. They stress that fiscally sound policies can ensure competitive tax rates for businesses and fair treatment for middle-class Americans.
“Good faith negotiations can ensure the permanence of a competitive tax code for American businesses with reasonable, effective tax rates,” the senators stated in their letter.
Broader Implications for Michigan Residents
For Michigan families, the stakes are high. The debate over tax reform and deficit reduction could influence household budgets, small business growth, and job creation across the state. Without bipartisan agreement, Michiganders risk facing increased economic pressures as the nation’s debt climbs.
The conversation around tax reform also underscores the importance of balancing economic growth with fiscal responsibility. Peters and Slotkin’s call for negotiation reflects a commitment to avoiding short-term fixes in favor of sustainable, long-term solutions.
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