Senate Majority Leader John Thune addressed concerns Wednesday that Americans face excessive penalties and complexity when filing taxes.
Appearing on “The Record with Greta Van Susteren,” Thune acknowledged the frustration many taxpayers feel but said recent policy changes have already reduced burdens for working families. Thune told Van Susteren that Americans who file taxes in good faith can still face late fees or penalties due to the system’s complexity.
“I think there are things that we could do and should be doing to make it simpler. Broadening the base, lowering rates, reducing the number of rates. There are lots of things that I think ought to be on the table when it comes to simplification,” Thune told Van Susteren.
The IRS can impose penalties when a tax return contains errors that lead to underpaid taxes, including an accuracy-related penalty of up to 20% for negligence or misreporting. In more serious cases, taxpayers may also face failure-to-file or failure-to-pay penalties, along with interest on any unpaid balance until the issue is corrected.
Thune said Americans filing returns this year are paying significantly less than in prior years.
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“Thanks to what we did last summer, people who are filing their tax returns — and today is Tax Day — are paying a lot less, 24% less than during the Biden administration. And if you’re somebody who gets income from tips and overtime or somebody who is a senior citizen who is eligible for their reduced taxation on seniors in this country and Social Security, you are seeing a 50% reduction in your tax liability or 50%, I should say, bigger tax refund this year than you have in past years,” Thune said. “No tax on tips, no tax on overtime and no tax on or, I should say, lower taxes on seniors on Social Security are all things that are benefiting literally millions of people across this country and putting more money in their pockets.”
Thune said the system could still be simplified more.
“But are we lowering taxes on working families and things that we did? Thirty four million families that take the Child Tax Credit. There are 100 million Americans who claim the standard deduction,” Thune said. “Both of which have been doubled and now made permanent and actually increased above even what we did back in 2017 with that tax reform. It’s a new — I think — day in America in terms of working families and the opportunities they have available to them because of the more money they have in their pockets as a result of what we did last summer.”
President Donald Trump signed the “Big Beautiful Bill” on July 4 of last year, enacting a sweeping tax package that reduces taxes for working Americans by expanding deductions for tips and overtime pay, effectively lowering taxable income for millions of hourly and service workers. The legislation also broadens relief for families by increasing the child tax credit and standard deduction, which can result in larger refunds and lower overall tax burdens for tens of millions of households.
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