WASHINGTON, DC – U.S. Senators Gary Peters (D-MI) and Elissa Slotkin (D-MI) recently urged their Republican colleagues to engage in bipartisan, good-faith negotiations to reduce the deficit and keep costs down for hardworking Michigan families ahead of upcoming debates over the federal debt ceiling and tax reform. The senators joined a letter to Senate Majority Leader John Thune (R-SD) and Senate Finance Committee Chairman Mike Crapo (R-ID) underscoring the desire to work across the aisle to find reasonable, commonsense solutions that support businesses while protecting hardworking, middle-class Michigan families by reducing unnecessary spending, promoting tax policies that help middle-class families, and ensuring everyone pays their fair share in taxes.
“Bipartisan reforms, including targeted reductions in federal spending, can reduce deficit concerns while protecting low and middle income Americans and promoting pro-family tax policy. We also believe good faith negotiations can ensure the permanence of a competitive tax code for American businesses with reasonable effective tax rates and competitive treatment of capital and R&D expenses, as well as a rational international tax regime,” the senators wrote.
“While there will certainly be challenges to finding bipartisan agreement on certain issues, we believe addressing the growing deficit and reducing unnecessary spending can serve as a basis for good faith bipartisan negotiation. We stand ready to work with you in good faith to craft legislation that can achieve 60 votes in the Senate,” they continued.
This letter comes as many provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire at the end of the year. As Congress debates changes to tax policy, the senators are calling for a comprehensive approach that protects policies that provide tax relief to working families and small businesses throughout Michigan, including through policies like the Child Tax Credit, providing tax cuts to small businesses that invest in research and development (R&D), and making sure the highest paying earners and corporations are paying their fair share. The senators are also calling for any changes to tax policy to be fiscally responsible and address deficit spending.
According to the nonpartisan Congressional Budget Office (CBO), extending all of the expiring provisions of the TCJA would cost $4.6 trillion over ten years, once interest is included. CBO also projects that the annual budget deficit, without including any extension of the TCJA, will grow from $1.9 trillion in 2024 to $2.9 trillion in 2034. Extending this tax law in a partisan manner and without first pursuing bipartisan solutions would unfairly burden future generations with a significantly larger federal debt. The letter reiterates Peters’ and Slotkin’s belief that working in a bipartisan manner to reform tax policy and address our growing national debt through responsible spending reforms can achieve a better outcome for Michiganders than partisan legislation.
Text of the letter can be found here and below.
Dear Majority Leader Thune and Chairman Crapo:
We write regarding the immense tax and budget policy challenges facing the 119th Congress. These issues require bipartisan cooperation, and we hope you will consider working with us to develop fiscally responsible solutions to the upcoming expirations of the federal debt ceiling and Tax Cuts and Jobs Act (TCJA) while supporting middle class Americans.
As you are well aware, Congress and the President will face a daunting budget reality in 2025. First, the federal debt ceiling, which was raised under the Fiscal Responsibility Act, will once again need to be addressed. Second, many provisions of the Tax Cuts and Jobs Act of 2017 will expire at the end of the year. The nonpartisan Congressional Budget Office (CBO) estimated in 2024 that extending all of the expiring provisions of the TCJA would cost $4.6 trillion over ten years, once interest is included.1 CBO also projects that the annual budget deficit, without including any extension of the TCJA, will grow from $1.9 trillion in 2024 to $2.9 trillion in 2034.2 CBO accurately predicted the score of the TCJA’s impact on the federal budget in 2017 as revenue has been within two percent of their projections.3 CBO’s projections are just as likely to be accurate now.
We understand that the Senate Republican Conference is likely to use the budget reconciliation process to address these expirations. While we respect the majority’s right to do so under Senate rules, we believe a better outcome can be achieved by working in a bipartisan manner to reform the tax code and address our growing national debt through responsible spending reforms. We believe a fully deficit-financed, partisan effort could risk raising costs for families, driving up interest rates for Americans looking to purchase a home, and increasing borrowing costs for American businesses and consumers. It also risks reducing the government’s future ability to respond to national security emergencies and fund our nation’s key programs.
Bipartisan reforms, including targeted reductions in federal spending, can reduce deficit concerns while protecting low and middle income Americans and promoting pro-family tax policy. We also believe good faith negotiations can ensure the permanence of a competitive tax code for American businesses with reasonable effective tax rates and competitive treatment of capital and R&D expenses, as well as a rational international tax regime.
While there will certainly be challenges to finding bipartisan agreement on certain issues, we believe addressing the growing deficit and reducing unnecessary spending can serve as a basis for good faith bipartisan negotiation. We stand ready to work with you in good faith to craft legislation that can achieve 60 votes in the Senate.
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