EDITORIAL: Extend the president’s 2017 income tax reform bill

Markets have stabilized somewhat as President Donald Trump’s team negotiates trade deals with various nations and the White House tempers its more extreme instincts on tariffs. The White House could also make additional headway on the economy by moving faster to extend Mr. Trump’s 2017 tax cuts.

Tax relief remains a winning issue for Republicans and the president. A Cato Institute survey this month found that only 15 percent of those surveyed favor allowing the tax cuts to expire at the end of this year, which would cost the average American taxpayer between $1,000 and $2,000 annually. Eighty-one percent of respondents said they would have difficulty scraping together the cash to pay higher taxes when they file in 2027.

The survey also revealed that the “eat the rich” class-warfare rhetoric favored by Democrats and progressives has limited appeal. Ninety percent of respondents agreed that “there is nothing wrong with trying to make as much money as one honestly can” while 54 percent said they feel more admiration than resentment toward the rich.

“If you look at sort of the broader results from our survey,” Adam Michel of Cato told The National News Desk, “it shows that the American people, by and large, don’t want to close (the) deficit with higher taxes but instead want the federal government to focus on cutting spending, on reducing spending across the board.”

This is in line with Mr. Trump’s efforts — through DOGE and other initiatives — to attack government waste and inefficiency.

The House this month narrowly passed a budget framework that slows spending growth and lays the groundwork for extending the 2017 tax cuts. But the issue has largely been on the back burner. The Cato survey revealed that 55 percent of Americans are unaware that, without congressional action, the tax relief passed during Mr. Trump’s first term is set to lapse in just eight months.

That’s an opportunity for the White House to emphasize its intent to allow the vast majority of Americans, including middle-class workers, to keep more of what the earn.

Some GOP strategists have reportedly advised Mr. Trump to go along with higher taxes on the wealthy as a means of undercutting Democratic attacks. The president last week wisely demurred, calling the idea “very disruptive,” adding, “You’ll lose a lot of money if you do that.” Indeed, as The Wall Street Journal argued, this would cede the high ground and play into the hands of progressive activists, who will never be satisfied with incremental hikes in tax rates for wealthy Americans.

Extending the signature achievement of Mr. Trump’s first term would have numerous political and economic benefits. It’s time Republicans and the administration moved it to the forefront of their agenda.