Overview

• Sen. Josh Hawley introduced a tax reform plan allowing popular income tax credits—such as the child tax credit and home mortgage deduction—to offset payroll taxes.
• The proposal targets the two-thirds of Americans who pay more in payroll taxes than income taxes, addressing a gap in tax relief for lower-income workers.
• Under the plan, a family earning around $80,000 could save thousands annually, with examples including a pastor saving $6,582 and a police officer's family saving $7,500.
• Hawley’s initiative shifts the focus of GOP budget negotiations under President Trump's administration toward working-class financial relief.
• The proposal reflects a broader Republican strategy to address economic challenges faced by blue-collar workers, including stagnant wages and rising living costs.