WASHINGTON, D.C. – Today, U.S. Rep. Mike Carey (R-Ohio-15), a member of the House Ways and Means and Budget Committees, voted to pass the budget reconciliation bill, legislation that will deliver historic tax relief to workers, families, seniors, small businesses, and farmers.
After passing both the U.S. House of Representatives and the U.S. Senate, the bill now heads to the President’s desk to be signed into law. Below is Rep. Carey’s statement on the bill’s final passage:
“Our reconciliation package reinvigorates the American Dream by cutting taxes for families, workers, seniors, small businesses, and farmers. It also provides critical funding to ensure continued security at the border, offers resources for affordable housing, and works to unshackle our economy,” Rep. Carey said. “This bill was the product of negotiations from Republicans across the House and Senate to enact President Trump’s central promises. While there is still work to be done for central Ohio, I was proud to support this legislation and avoid the largest tax increase on working families in American history. As we move forward, I will continue to deliver for my constituents in and around Columbus.”
THE REPUBLICAN RECONCILIATION BILL:
- Prevents the largest tax increase in American history that would have occurred when tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) were set to expire at the end of 2025.
- In Ohio’s 15th Congressional District, a household making the median income would see more than a $1,500 annual tax increase if the TCJA were allowed to lapse at the end of 2025, a 23% tax hike.
- Permanently expands the Child Tax Credit (CTC) to $2,200 per child and ties its growth to inflation, so the value does not decrease over time.
- Without action by Congress, the CTC would have reverted to $1,000 per child at the end of 2025.
- Eliminates taxes on tipped wages for American workers.
- Eliminates taxes on overtime pay for American workers.
- Offers an expanded $6,000 tax credit for seniors.
- Allows families to deduct interest payments on car loans for used cars made in America.
- Prevents the Death Tax from hitting over 2 million family-owned farms who would otherwise see their limitation cut in half.
- This ensures that family-owned farms and ranches can be passed down to the next generation.
- Makes permanent the doubled guaranteed Standard Deduction, stopping a scheduled $15,000 cut in this deduction for families at the expiration of the TCJA.
- Repeals the IRS 1099-K Rule, which would harm gig workers by forcing them to report transactions of $600 or more to the IRS.
- Renews the Research and Development (R&D) incentive for small businesses.
- Currently, businesses must allocate R&D expenses over 5 years instead of immediately. Following the TCJA, R&D investment grew by 18%.
- Provides over $175 billion for border security measures, including hiring new immigration enforcement officers, purchasing more equipment, and constructing new physical border barriers.
- Preserves and protects Medicaid for American citizens by:
- Establishing commonsense work requirements for able-bodied adults without young dependents.
- Strengthening the program to serve the most vulnerable Americans.
- Delivers at least $500 million for rural Ohio medical care.
BACKGROUND:
This legislation is the result of years of Republicans traveling across the country and listening to everyday Americans, hearing their concerns about the hardships they currently face, and how they would compound if provisions of the TCJA expired.
The framework for this bill in the form of a budget resolution passed the House on April 10, 2025.
Many of the tax provisions in this bill passed out of the House Ways and Means Committee on May 14, 2025.
The first full version of this bill passed the House of Representatives on May 22, 2025.
Rep. Carey published an op-ed in The Columbus Dispatch on May 14, 2025 explaining the critical need for tax provisions in this bill.
# # #