Trump tax cuts at risk: What does it mean for Latino prosperity?

You might not know this, but your money is at risk of a massive tax hike.  

Why? Because the Trump tax cuts, officially known as the Tax Cuts and Jobs Act, are set to expire in 2025.  

The Trump tax cuts have helped thousands of Latino small business owners, saved Latinos hundreds or thousands of dollars a year, and helped people like you brave high inflation.  

If Congress doesn’t extend the 2017 tax reform, over 60% of Americans will face a massive tax hike that will cost the average American household $1,500 every year. 

Latinos can’t afford this. What America needs is more economic freedom, not more taxes.   

Here are three ways the Trump tax cuts benefited Hispanics — and how their expiration could hurt your wallet.  

The Trump tax cuts helped Latinos survive inflation. 

Soaring prices and a sluggish economy have wreaked havoc on the wallets of millions of Americans over the last four years.  

Latinos are no exception. They’ve been hit harder.  

That’s where the Trump tax cuts came in. Were it not for them, millions of Latinos would’ve paid more to finance government waste while Americans struggled to make ends meet due to record-high inflation.  

The Trump tax cuts gave Americans a lifeline during these tough years. If Congress scraps them, it’ll make life harder for everyday Americans.  

Here’s how much the average family will pay in the three states with the highest Latino population if Congress lets the tax cuts expire:  

• In California, they’ll pay $1,862 more.  

• In Florida, they’ll have to pay $1,590 more.  

• In Texas, they’ll owe $1,456 more.   

Inflation dug a hole in our finances. It isn’t fair to saddle hardworking Americans with higher taxes to pay for Washington’s reckless government spending.   

But that’s what’ll happen if Congress fails to act. 

The Trump tax cuts created the best economy for Latinos in history.  

Between 2017 and 2020, America experienced one of the most prosperous eras in recent history: rapid growth, rising incomes, and low prices. 

The Trump tax cuts helped make that possible. As taxes were cut across the board, consumers and businesses had more money to spend and invest, which led to record employment and growth.  

For Latinos, especially, these were years of unparalleled prosperity:  

• Just two years after the 2017 tax cuts, the Latino unemployment rate stood at 3.9% in August 2019 — the lowest rate since the government started measuring. 

• The median Hispanic household income rose by almost $5,000 in the two years after the tax cuts were passed, reaching an all-time high of more than $66,000 in 2019.  

Unsurprisingly, trusting people with their hard-earned money creates more prosperity than giving politicians billions of dollars to spend in a broken system that benefits special interests — while burdening everyday Americans with debt and inflation.   

The Trump tax cuts helped Latino small businesses.  

Latinos own 1 in 4 new businesses in America, create $800 billion a year for the economy, and are more likely than the average American to start a new business.   

The Trump tax cuts helped countless small businesses thrive. 

They simplified the tax code and expanded deductions for small businesses, saving them money and time when filing taxes.  

Before the pandemic, they gave businesses the money to expand; during the pandemic, they gave them more room to withstand high inflation and uncertainty.  

According to a Small Business & Entrepreneurship Council report, entrepreneurs know very well how the 2017 tax cuts have helped them:  

• More than 8 in 10 small business owners say the Trump tax cuts have helped their business. 

• Almost half of small businesses have used the small business deduction of the TCJA. 

• More than half of business owners say uncertainty over the Trump tax cuts is making them change their plans.  

Entrepreneurs have greatly benefited from the Trump tax cuts, which allowed them to expand their businesses, create jobs, and bring prosperity.  

The Trump tax cuts saved Latinos money, built a prosperous economy, and helped small businesses thrive. That’s why The LIBRE Initiative will fight to ensure Congress does the right thing and extends the Trump tax cuts — because Americans can’t afford another tax hike.   

LIBRE is tirelessly advocating for freedom-oriented policies that empower Latinos and unleash their potential. To stay updated on our latest news and events, sign up for the Qué Pasa LIBRE newsletter here.