Republicans in Congress are about to make a major mistake on tax policy, and the consequences could slam our economy. While they're busy posturing about budget numbers and reconciliation procedures, they're missing the fundamental point: without swift action on tax cuts, we're heading toward a massive tax increase that will hit every American.

The stakes couldn't be clearer. If Congress fails to act by year's end, the standard deduction for couples will plummet from $30,000 to around $15,000-17,000. This isn't just a technical adjustment—it's a direct hit to American families' wallets. Only in Washington would they create tax legislation with expiration dates like a gallon of milk.

But timing isn't just about avoiding disaster—it's about creating prosperity. A tax bill passed in December, as happened in 2017, loses a full year of economic impact. Markets and businesses make their plans well in advance. Republicans need to stop floundering over procedural details and pass significant tax cuts by April or May to affect the 2025 economy.

The path forward is straightforward: focus on growth-oriented tax cuts that go beyond merely extending the 2017 provisions. Eliminate taxes on tips. Remove taxes on Social Security benefits. Cut the corporate tax rate to 15% for domestic profits. And yes, reduce the capital gains tax—a move that historically increases federal revenue immediately as people unlock their accumulated gains.

Some Republicans are getting lost in theatrical displays of fiscal virtue, demanding massive spending cuts without specifics. They're missing the lesson of post-World War II America. We tackled a debt-to-GDP ratio even higher than today's through economic growth, not austerity. The ratio fell from 121% after the war to 35% by the early 1970s because assets grew faster than liabilities.

The current House debate over reconciliation bills—whether to do one or two—misses the point entirely. While they argue over ten-year scoring numbers and budget parameters, they're wasting precious time that could be used to boost economic growth. The focus should be on lowering marginal tax rates—the rates you pay on your next dollar earned—which directly impacts economic incentives.

For those worried about state and local tax (SALT) deductions in blue states, the answer isn't complicated: cut federal income tax rates across the board. This helps everyone, regardless of state, and removes the punishment for success. The standard deduction already simplified tax filing for millions—before 2017, 40% of Americans itemized; now only 9% do. Build on that success.

And let's be clear about capital gains tax cuts: they affect everyone's financial security through 401(k)s, IRAs, and pension funds. Critics will claim it's a gift to the wealthy regardless of what Republicans do, so they might as well do what actually works for the economy and generates revenue.

The real waste in government spending will be addressed through regulatory reform. The previous administration added regulations costing our economy over $2 trillion annually. From nonsensical agricultural rules to energy restrictions, these regulations are a hidden tax on every American business and consumer.

We don't need more congressional theatre about fiscal responsibility. We need action on taxes that will drive economic growth. Every day of delay means less impact on the 2025 economy. The choice is simple: act now for growth, or watch Americans face a massive tax increase while politicians posture about process.