COMMENTARY: Tax cuts working, but we’re evaluating it by the wrong standard

COMMENTARY: Tax cuts working, but we’re evaluating it by the wrong standard By Kent Strang InsideSources.com July 28, 2026 - 9:00 pm If one interprets the statement about implicit affordability as evidence that the Working Families Tax Cuts have fallen short, critics argue the policy fails to address today’s cost‑of‑living pressures. No single measure could ever resolve every affordability challenge facing the nation. Judging the law requires assessing it against its original purpose. After knocking on more than 27 million doors nationwide, Americans for Prosperity volunteers repeatedly heard the same concern: the cost of living. Families feel squeezed. Our polling shows that 4 out of 10 voters cite the cost of surviving as a top priority. They are not demanding an overnight transformation from Washington; they simply want the government to stop making life more expensive. Households want their paychecks to stretch a little further. Small‑business owners seek confidence in meeting payroll, the ability to hire another employee, invest in their enterprises, and keep their doors open for years to come. From those conversations a clear expectation emerges: the public does not anticipate Washington solving every problem, but they do expect it to avoid making things harder. Allowing people to retain more of what they earn is a sensible starting point. When groceries, fuel, and nearly every other expense rise, each dollar families keep becomes more valuable. That is precisely what the Working Families Tax Cuts were designed to achieve, and that is the standard by which they should be judged. Helping families keep a larger share of their earnings is one of the simplest ways Washington can increase affordability. The tax cuts prevented a tax increase that would have cost the typical household of four $1,500 annually. Tax Foundation estimates show the average payer is now paying roughly $2,300 less in federal taxes this year. For families already feeling the pinch, retaining more of their earnings creates breathing room—a modest cushion when the market bill exceeds expectations or when an unexpected payment arrives. Small‑business owners echo the same sentiment. They, too, need breathing room. Some months, meeting payroll is a struggle; adding staff, purchasing new equipment, or expanding into larger spaces becomes more difficult when the tax code penalizes those investments. The Working Families Tax Cuts altered that dynamic. By restoring full expensing for equipment purchases and for research and development, the law enables businesses to invest in growth rather than being taxed on those outlays. This is not merely sound tax policy; it gives owners additional flexibility to bring on another worker and place that name on the payroll. That outcome should not be surprising. When families gain a bit more breathing room and businesses are free to invest in new equipment, fresh ideas, and additional hires, positive results tend to follow. Broader economic projections point in the same direction. The Congressional Budget Office forecasts stronger economic growth under the law. By restoring full expensing for equipment purchases and allowing immediate deduction of research and development costs, the Working Families Tax Cuts lower barriers to investment, innovation, and expansion. When we back Americans and encourage them to invest in themselves and their enterprises, the economy benefits. More work remains to make life affordable. Helping families keep more of what they have earned and giving small businesses greater room to grow represents genuine progress. We should not lose sight of that. The Working Families Tax Cuts were never intended to solve every economic challenge. They were designed to help families retain more of their earnings and to give small businesses the confidence to expand. By that standard, the policy is working. Kent Strang is the managing manager for Americans for Prosperity. He wrote this for InsideSources.com.