U.S. Senator Josh Hawley (R-Mo.) has introduced a proposal aimed at significantly altering the landscape of federal tax policy, focusing on providing relief to working-class families.
In an opinion piece published last week, Hawley outlined his plan to make several popular income tax deductions refundable against payroll taxes, a move he argues would deliver a “historic tax cut” for those earning under $80,000 annually.
Hawley’s proposal centers on allowing taxpayers to apply the home mortgage interest deduction, the child tax credit, and the charitable deduction against their payroll tax liability. He argues that current tax structures disproportionately benefit higher earners, as many working-class Americans pay little to no income tax, but contribute significantly to payroll taxes.
READ: Sen. Chuck Schumer Won’t Rule Out Trump Impeachment If Dems Take Back Control
“The American working class needs a break,” Hawley stated in his op-ed. He highlighted the economic struggles faced by many, including rising costs of living and stagnant wages. “Mortgages are unaffordable. Rent is unaffordable. Groceries are unaffordable.”
The senator’s plan seeks to address this disparity by allowing individuals to leverage these traditionally income tax-based deductions against the 15% payroll tax, which is split between employers and employees. He emphasizes that this change would directly benefit those who contribute heavily to the payroll tax system but see limited returns from existing income tax breaks.
To illustrate the potential impact of his proposal, Hawley provided examples from his home state of Missouri. He cited a pastor and father of six who could save an estimated $6,582 annually, and a police officer’s family struggling with daycare costs and inflation, who could see savings of approximately $7,500.
READ: Trump Signals End To Tariff Pause, Hints At “Reasonable” Rates
Hawley’s op-ed also included criticism of past republican tax policies, and called for a return to what he sees as the party’s traditional focus. “Republicans should get back to doing what they once did best: cutting taxes for the people who make this nation work.”
The proposal comes at a time of ongoing debate regarding federal tax policy and its impact on various income brackets.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
