PASSED: Historic Legislation to Overhaul Nation’s Tax Code for 1st Time in 31 Years
Home Run for Growth in Texas
Washington, November 16, 2017 | 0 comments
WASHINGTON, D.C. – Today, the House took historic action to pass the Tax Cuts and Jobs Act (H.R. 1) – bold tax reform legislation that delivers major tax relief to Texans and all Americans. U.S. Congressman Kevin Brady (TX-08) released the following statement:
“This is a historic moment for the American people,” said Congressman Brady. “Today we give hope to middle-income families and Main Street job creators in Texas and across the country that a brighter future is on the horizon – a future where you can keep more of what you earn, start that new business, find that next job, and get that long-overdue raise. This vote is a big step forward – but it is not the last step. We will continue to strengthen this legislation and, working with the Senate, we will put tax reform on President Trump’s desk by the end of the year for the first time in 31 years.”
What the Tax Cuts and Jobs Act means…
For Texas:
Creates 74,037 news jobs.
Increases the annual income by $2,210 for median household of four.
In District Eight, the average four-person family will see a tax cut of $2,099.
(calculated from average median income: $92,113)
Strengthens Texas’ prominence as the nations leading exporting state by slashing the 35 percent corporate tax rate, the highest in the developed world, to 20 percent. Allowing Texas companies to reinvest back added profits into further modernization and job creation.
For All Americans:
Lowers individual tax rates for low-and middle-income Americans to Zero, 12%, 25%, and 35%. 39.6% for high-income Americans.
Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
Eliminates special-interest tax breaks so an individual or family can file their taxes on a form as simple as a postcard.
For Families:
Establishing a new Family Credit – which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
Preserving the Adoption Tax Credit so parents continue to receive additional tax relief as they open their hearts and their homes to an adopted child.
Maintains the Earned Income Tax Credit to provide important tax relief for low-income Americans working to build better lives for themselves.
Streamlines higher education benefits to help families save for and better afford college tuition and other education expenses.
Continues the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization.
Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000 – providing tax relief to current and aspiring homeowners.
Continues to allow people to write off the cost of state and local property taxes up to $10,000.
Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future.
Repeals the Alternative Minimum Tax so millions of individuals and families will no longer have to worry about calculating their taxes twice each year and paying the higher amount.
Repeals the Death Tax after seven years. Family-owned farms and businesses will no longer have to worry about double or triple taxation from Washington when they pass down their life’s work to the next generation.
For Businesses:
Lowers the corporate tax rate to 20%– down from 35%, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25%– the lowest tax rate on small business income since World War II.
Provides a new, low tax rate of 9% for the first $75,000 of business income earned by owners of pass-through businesses of all types who earn less than $150,000, which will help the Main Street startups in every line of business that fuel innovation and job creation in communities across the country.
Establishes strong safeguards to distinguish between individual wage income and pass-through business income so tax relief goes to the local job creators it was designed to help most.
Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity, and paychecks.
Protects the ability of small businesses to write off the interest on loans so that job creators can expand a business, hire workers, and increase paychecks.
Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
Preserves the Research & Development Tax Credit– encouraging our businesses and workers to develop cutting-edge “Made in America” products and services.
Strengthens accountability rules for tax-exempt organizations to ensure that churches, charities, foundations, and other organizations receiving tax-exempt status are focused on helping people and communities in need.
Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
