It turns out elections do matter. Last year, Democrats spent more than $20 million trying to defeat me. One of the biggest issues in the race centered on taxes. I supported extending the 2017 tax cuts. My opponent, Democrat Will Rollins, opposed extending the 2017 tax cuts. In the end, I received more votes, and in the process won one of the swing seats that was critical to Republicans keeping the Majority in the House of Representatives, albeit the slimmest majority in history.
Last week, I fulfilled my promise to Riverside County voters and voted to pass the bill extending the 2017 tax cuts, which were set to expire at the end of the year. That bill was signed into law by President Trump on July 4th and will protect 41st Congressional District taxpayers who were set to receive an average tax increase of $1,742 if Congress failed to act.
The 2017 tax cuts put more money in the pockets of American workers. In the years that followed, they powered record-breaking economic growth. According to a report by The White House Council of Economic Advisers: “median household income rose $6,400” with “low-wage and less formally educated workers experiencing a faster uptick in earnings compared to workers at the top end of the income distribution.” Economic data showed “50-year lows in the unemployment rate and record lows in poverty for all socioeconomic groups.” Our economy was booming until the pandemic shut it down in 2020.
Voters delivered a mandate to Republicans last November to extend and enhance the 2017 tax cuts – and that’s exactly what we’ve done. We didn’t just change the expiration date; we added substantial tax savings for Americans on many fronts. One of the most popular provisions from our 2017 tax cuts was the doubling of the child tax credit from $1,000 to $2,000 per child. Instead of allowing it to return to $1,000 per child, we have now permanently increased the tax credit to $2,200 per child.
On top of lower tax rates allowing Americans to keep more of their hard-earned money, millions of workers will also benefit from new provisions honoring President Trump’s ‘no tax on tips’ and ‘no tax on overtime’ campaign pledges. Workers will be able deduct up to $25,000 in tips and up to $12,500 in overtime income earned on their taxes. Workers in Southern California’s hospitality and service industries will benefit tremendously from these new tax cuts, especially during the World Cup in 2026 and Olympics in 2028.
Another provision that will provide particular relief for Californians is an expansion of the state and local tax, or SALT, deduction. Our bill lifts the existing $10,000 SALT deduction cap up to $40,000. By quadrupling the SALT deduction, we are helping taxpayers in high tax states run by Democrats, like California, from effectively paying tax twice on their income.
To offset the cost of high interest rates and encourage the purchase of American-made cars, there is a new tax deduction up to $10,000 for car loan interest on new American-made cars. To help our seniors, there’s a new $6,000 standard deduction for anyone 65 or older, offsetting the tax liability they may face from receiving Social Security benefits.
According to analysis by the nonpartisan Tax Foundation, the overall impact of this robust package of tax changes will lead to a growing economy, incentivize investments, new job creation, and higher wages.
Democrats have opposed the tax cuts by returning to their same old tired critique of any tax bill – complaining that it only benefits the wealthy at the expense of working-class Americans. This argument just doesn’t hold up and Americans are finally seeing through to the truth. In 2025, the wealthiest Americans who fall in the top tax bracket will be subject to a 37% federal income tax rate. In 2026, under this new law, those wealthy Americans will be subject to a 37% federal income tax rate. In fact, the U.S. has one of the most progressive tax codes in the world, with the top 50 percent of earners paying 97% of all federal taxes.
Our new and expanded tax benefits – no tax on tips, no tax on OT, $2,200 child tax credit, and quadrupling the SALT deduction – are all focused on delivering on our promised tax relief for working-class American families, not millionaires and billionaires. When Riverside County families and seniors see this tax relief, they can be assured that their vote counted, and their vote made it possible for them to keep more of their hard-earned money.
Ken Calvert represents California’s 41st congressional district.
