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8 LONG TITLE
9 General Description:
10 This resolution recognizes the benefits from the Tax Cuts and Jobs Act of 2017 (the
11 Act) and encourages the United States Congress to permanently extend the Act.
12 Highlighted Provisions:
13 This resolution:
14 ▸ recognizes the various positive economic benefits to individual and corporate
15 taxpayers due to the Tax Cuts and Jobs Act of 2017;
16 ▸ examines the consequences of the expiration of the Act in 2025; and
17 ▸ encourages Congress to permanently extend the Act to retain the economic benefits
18 to taxpayers.
19 Special Clauses:
20 None
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22 Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
23 WHEREAS, before the government-mandated economic shutdowns during the
24 COVID-19 pandemic, the Tax Cuts and Jobs Act of 2017 spurred steady economic expansion
25 and allowed the spirit of entrepreneurship to flourish while creating new jobs and opportunities
26 for millions of Americans;
27 WHEREAS, the tax cuts of 2017 resulted in a $1.5 trillion net tax cut and were
28 followed by historically low unemployment rates, an increase in business investment, and a
29 $6,000 increase in real median household income over two years, which included raises and
30 bonuses for workers immediately after the 2017 tax cuts were adopted;
31 WHEREAS, more than 100 million American taxpayers from all income groups,
32 particularly middle and working class Americans, have enjoyed real tax relief due to the Tax
33 Cuts and Jobs Act;
34 WHEREAS, twenty-three provisions of the 2017 tax cuts directly relating to individual
35 income taxes, such as the reductions in personal income tax rates, the near doubling of the
36 standard deduction, and the substantial reduction of the Alternative Minimum Tax (AMT) will
37 expire after December 31, 2025;
38 WHEREAS, the 2017 tax cuts reduced federal tax rates for households across every
39 income level, and this relief resulted in a tax cut of more than $1,500 for the average
40 middle-income earner;
41 WHEREAS, before the 2017 tax cuts, the top corporate income tax rate in the United
42 States was 35%, the highest among all nations in the Organization for Economic Co-operation
43 and Development (OECD);
44 WHEREAS, the 2017 tax cuts reduced the business tax rate from 35% to 21%, bringing
45 the United States back to average among OECD member nations and enhancing American
46 competitiveness;
47 WHEREAS, the 2017 tax cuts set an annual cap of $10,000 on the state and local tax
48 (SALT) deduction, thereby broadening the tax base at the federal level and in many states,
49 which caused state level budget surpluses and resulted in many states offering substantial tax
50 relief;
51 WHEREAS, if the current $10,000 cap on the SALT deduction is allowed to expire
52 after December 31, 2025, the federal tax base will be narrowed;
53 WHEREAS, returning to an unlimited SALT deduction would be an incentive for many
54 states to once again implement higher taxes and spend at higher levels;
55 WHEREAS, a majority of Americans support making the 2017 tax cuts permanent; and
56 WHEREAS, allowing the Tax Cuts and Jobs Act of 2017 to expire would result in a tax
57 increase on hardworking American taxpayers, a significant decline in American
58 competitiveness, fewer jobs, reduced wage income for workers, and higher prices:
59 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
60 Governor concurring therein, urges the United States Congress to permanently extend the Tax
61 Cuts and Jobs Act of 2017 with commensurate spending cuts to avoid increasing the federal
62 debt burden.
63 BE IT FURTHER RESOLVED that a copy of this resolution be sent to the members of
64 Utah's congressional delegation.