For conservatives across America, few issues are more pressing in 2025 than the need to extend and make permanent the Tax Cuts and Jobs Act (TCJA) of 2017. At the Conservative Political Action Conference (CPAC), a panel discussion titled Keeping More of What You Earn: Trump’s Tax Cuts for America addressed this critical issue. Moderated by Scottie Nell Hughes, the panel featured insights from Andrew Langer, Director of the Center for Regulatory Freedom at CPAC; Pete Sepp, President of the National Taxpayers Union; and Sandra Asuncion, Government Affairs Director at the American Principles Project. The discussion underscored the necessity of extending the TCJA before its key provisions expire on December 31, 2025, and the risks of negotiating away essential tax relief measures in the reconciliation process.
Why the TCJA Matters for American Families and Businesses
Sandra Asuncion opened the discussion by highlighting how the TCJA significantly benefited working families. She pointed out that the child tax credit doubled from $1,000 to $2,000, standard deductions increased, and tax rates were cut across the board—providing the average American an additional $1,400 in take-home income annually. She emphasized that a failure to extend these provisions would lead to a significant financial burden on millions of Americans, particularly those already struggling with inflation and rising costs of living.
Andrew Langer focused on the business impact of the TCJA, explaining that the reduction of the corporate tax rate from 35% to 21% led to increased business investment, job creation, and wage growth. He noted that many small businesses took advantage of the 20% pass-through deduction, allowing entrepreneurs to reinvest in their businesses and their employees. If Congress fails to act, these businesses will face higher tax burdens, stifling innovation and economic growth.
Pete Sepp detailed why the TCJA was temporary, explaining that it was passed under budget reconciliation rules, meaning key provisions had to expire after ten years unless extended. He warned that if the tax cuts are not renewed, individual tax rates will revert to their pre-2017 levels, leading to a massive tax hike for middle-class Americans.
The Economic Risks of Letting the TCJA Expire
The panelists all agreed that failing to extend the TCJA would be economically disastrous:
For individuals: Every tax bracket would increase, leaving families with less disposable income and increasing their financial strain.
For businesses: Corporate tax rate hikes and the loss of small business deductions would result in reduced hiring, layoffs, and higher prices for consumers.
For the economy: A recent National Association of Manufacturers study found that failing to extend the TCJA would cost the U.S. economy $1 trillion in lost GDP and 5.9 million fewer jobs.
Sandra Asuncion warned that while many Americans do not realize the tax cuts are set to expire, they will feel the impact in early 2026 when they file their tax returns. She called on conservatives to raise awareness and pressure lawmakers to act.
The Role of Budget Reconciliation in Extending the TCJA
Andrew Langer and Pete Sepp addressed the political strategy for extending the tax cuts, specifically through budget reconciliation. Since Republicans control both chambers of Congress, reconciliation would allow them to extend the TCJA with a simple majority vote, avoiding a Democratic filibuster. However, both panelists warned that some lawmakers may seek to compromise by rolling back key provisions to gain bipartisan support.
Dangerous concessions could include:
Raising the corporate tax rate above 21%, hurting American businesses and workers.
Weakening or eliminating the small business 20% deduction, increasing taxes on millions of entrepreneurs.
Rolling back the R&D tax credit, harming U.S. innovation and global competitiveness.
Reducing the scope of the Child Tax Credit, taking thousands of dollars away from families.
The panel strongly advised against these compromises, arguing that Republicans should not negotiate away tax relief that has fueled economic growth.
Debunking the Myth: Did the TCJA Increase the Deficit?
A common criticism of the TCJA is that it increased the deficit. However, Pete Sepp refuted this claim, stating that federal revenues actually increased after the passage of the TCJA. He emphasized that the real issue is out-of-control government spending—not tax cuts.
In 2024, the federal government collected over $5 trillion in revenue, yet Congress continued to spend at record levels, with a budget exceeding $7 trillion. Sepp argued that rather than raising taxes, lawmakers should focus on cutting unnecessary government spending and prioritizing fiscal responsibility.
What Conservatives Can Do to Protect the TCJA
The panel concluded with a call to action, urging conservatives to mobilize support for the TCJA’s extension. Pete Sepp emphasized that lawmakers need to hear from their constituents now, before negotiations are finalized. He encouraged attendees to:
Call and email their representatives to demand tax certainty.
Spread awareness about the impending tax hikes.
Support advocacy groups fighting to keep the TCJA in place.
Sandra Asuncion stressed that 94% of Americans are unaware that the TCJA will expire soon, but 100% will feel the impact if nothing is done. She urged conservative activists to educate their communities and hold Congress accountable.
Conclusion: The Time to Act is Now
The 2025 CPAC tax panel made it clear: Congress must extend and make permanent the Tax Cuts and Jobs Act to prevent a devastating tax increase on American families and businesses. The panelists provided compelling evidence that the TCJA has fueled economic growth, increased wages, and strengthened small businesses. However, they also warned that the fight is far from over—conservatives must push back against compromises that would water down the effectiveness of the tax cuts.
With millions of jobs and trillions of dollars in economic activity at stake, Republicans must prioritize tax relief and economic certainty. The future of the U.S. economy depends on it.
