Today, with the support of Congressman David Rouzer, the House of Representatives passed arguably the biggest tax cut and reform package in history. The Tax Cuts and Jobs Act (H.R. 1) overhauls the tax code to bring back jobs from overseas, improve America’s competitiveness in the global economy, and create a much more dynamic economy that will naturally generate increased wages. This legislation provides historic tax relief for American workers, families, and job creators.
“For far too long, individuals, families and businesses have been forced to comply with an outdated and burdensome tax code that penalizes their effort and hard work and has been a drag on our economy,” said Rep. David Rouzer. “This tax relief and reform bill respects hardworking taxpayers and the challenges they face by lowering taxes, by making tax-filing much simpler, and by creating an environment that will lead to the wealth creation necessary to drive job growth and increase wages. This is truly a historic day in the House of Representatives, and I look forward to the bill’s passage in the Senate tomorrow.”
The Tax Cuts and Jobs Act:
Lowers individual taxes and sets the rates at 10%, 12%, 22%, 24%, 32%, 35%, and 37%
Significantly increases the standard deduction from $6,500 to $12,000 for individual filers and $13,000 to 24,000 for joint filers
Expands the Child Tax Credit from $1,000 to $2,000
Preserves the mortgage interest deduction up to $750,000
Expands the medical expense deduction for 2017 and 2018 for medical expenses exceeding 7.5% of adjusted gross income and then rises to 10% beginning in 2019
Continues and expands the deduction for charitable contributions
Eliminates Obamacare’s individual mandate penalty tax starting in 2019
Maintains the Earned Income Tax Credit
Exempts tuition waivers for graduate students from being taxed
Retains popular retirement saving options such as 401 (k)s and Individual Retirement Accounts (IRAs) so Americans can continue to save for their future
Doubles the amount of the current Death Tax exemption
Lowers the corporate tax rate to 21% (beginning Jan. 1, 2018) – down from 35%, which is the highest in the industrialized world
Offers a first-ever 20% tax deduction that applies to the first $315,000 of joint income earned by all businesses organized as S corporations, partnerships, LLCs and sole proprietorships
Allows businesses to immediately write off the full cost of new equipment
Protects the ability of small businesses to write off interest on loans
Retains the low-income housing tax credit
Preserves the Research and Development Tax Credit
Eliminates incentives that reward companies for shifting jobs, profits and manufacturing plants abroad
