Overview

• Senator Josh Hawley has proposed a tax cut allowing Americans earning below $80,000 to apply key income tax credits, such as the child tax credit, against payroll taxes.
• The proposal addresses a gap in tax relief, as two-thirds of Americans pay more in payroll taxes than income taxes and currently lack access to traditional tax benefits.
• Hawley provided examples of potential savings, including $6,582 annually for a pastor earning $80,000 and $7,500 for a police officer’s family with high daycare costs.
• The plan has become a focal point in GOP negotiations over President Trump’s budget, with discussions on offsetting costs through higher taxes on wealthy individuals.
• Hawley’s initiative aligns with broader Republican efforts to deliver tax relief to working families facing financial strain from rising living expenses.