You won't get tax relief, small business support, or energy security
But maybe you can be distracted from reality with a few pleasant words
Our favorite Congressman sent out a tome discussing the high cost of living. We're surprised he's noticed! His main points include "tax relief for workers and families," "support for small businesses," and "unleashing American energy and energy security." Once again, Wittman has used his politician-favorite propaganda technique called "stacking the deck," in which he points out only positive points and avoids the associated problems.
Tax Relief for Workers and Families: Wittman identifies numerous tax cuts that together amount to about 1-3% of after-tax income in 2026. Further, most of these provisions expire for middle class Virginians in one or two years while 50% of the tax cuts go to the richest among us and live forever. The bigger problem is that these small, temporary tax cuts will do little to counteract the devastating cuts to healthcare and governmental services. The CBO and other analysts stress that "household resources" for most families below roughly $200k decline over the decade when you include higher health insurance premiums, loss of enhanced ACA premium tax credits after 2025, and cuts to basic needs services in the broader package tied to H.R. 1. In later years, many middle income households will see small tax increases while high income households retain large gains.
Support for Small Businesses: Wittman's correct that there are tax breaks for some small businesses, but most of the tax breaks flow to large "pass-through" businesses such as sole proprietorships and LLCs rather than mom and pop shops. In fact, the same problems that affect individuals will hit small businesses: higher tax rates once lost deductions and higher costs are included with long-range debt raising borrowing costs and overall risk. Further, new and modified rules around overtime and other deductions suggest more record-keeping and tax planning, increasing errors and costs. Finally, tariff driven price increases on imported inputs and consumer goods raise operating costs and reduce customers' real purchasing power, which hits smaller retailers, restaurants, and local service providers that lack pricing power.
Unleashing American Energy and Energy Security: The simple response is that H.R. 1 leaves existing fossil fuel subsidies intact while gutting most of the clean energy provisions of the Inflation Reduction Act. Be prepared for more offshore drilling, oil, gas, and coal production and increased emissions. Don't forget the higher cost of electricity due to less reliance on alternative energy sources and the prospect of more AI data centers.
This list provides insight into how Wittman operates: don't make waves in the Republican Party, and keep the oil/gas/electric industries happy.