New GOP tax package would put $4,000 back in American families' pockets

House Republicans are unveiling a tax package on Friday that aims to put an additional $4,000 in the pockets of American families and includes a host of tax breaks for small businesses as well as individuals. 

Ways and Means Committee Chair Jason Smith, R-Mo., said the package is a product of his panel’s field hearings throughout the U.S. this year, in which they heard from business owners and other Americans in West Virginia, Oklahoma, New York and other places. 

Smith said the bill "pulls together critical ideas introduced by Ways and Means Committee members in response to needs and concerns voiced by the American people."

"It builds on successful tax policies enacted by Republicans that spurred higher economic growth — far more than projected — and sparked the fastest growth in real wages in 20 years," the chairman said. "These policies will provide relief for working families, strengthen small businesses, grow jobs, and protect American innovation and competitiveness."

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The plan is a set of three bills that shape the House GOP’s position on tax policy. Chief among those is the Tax Cuts for Working Families Act, which provides a bonus guaranteed tax deduction of $4,000 to married couples filing jointly who make up to $400,000 per year. Someone filing as head of household making up to $300,000 would be eligible for a $3,000 deduction.

Roughly 107 million families would be eligible for the benefit, meant to last for two years, per the committee. It’s based on legislation that was put forward by Reps. Nicole Malliotakis, R-N.Y., and Michelle Steel, R-Calif. 

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Another aspect, the Small Business Jobs Act, aims to cut red tape for business owners who have to file a 1099-MISC form for work done by subcontractors that costs them $600 or more. That $600 threshold, which according to the committee has been in place since 1954, would be raised to $5,000 under the GOP bill.

That bill would also repeal a Biden administration IRS policy change requiring payments of $600 or more on money transfer apps like Paypal and Venmo to be reported to the tax agency. It would reverse it to the previous cap of $20,000.

"Under President Biden’s failed leadership, American families are paying more for gas and groceries, our farmers are seeing input costs spike, and our small businesses are watching their profit margins dwindle," Rep. Randy Feenstra, R-Iowa, told Fox News Digital on Friday. "I’m proud to work with Chairman Smith and my colleagues on the House Ways and Means Committee to introduce a comprehensive economic and jobs package that will reignite the American economy, deliver much-needed tax cuts for our families, and cut red tape that stifles innovation and profitability for our businesses."

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Republicans’ tax plan would also expand tax breaks for corporations investing in startups and extend key policies of the Trump administration’s Tax Cuts and Jobs Act that are set to expire in 2025, among other tax-related provisions.

It also seeks to roll back the administration’s electric vehicle tax credits introduced in President Biden’s Inflation Reduction Act.

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The Ways and Means Committee is expected to consider the plan next week when lawmakers return to Capitol Hill. 

It potentially sets up a fierce fiscal battle with Democrats, who have lobbied for a new tax plan to include an expanded child tax credit and who have loudly opposed the Trump administration’s fiscal policies.