The House and the Senate passed the Tax Cuts and Jobs Act – and it is now headed to President Trump’s desk. This historic legislation will fix our broken tax code and provide the first major tax reforms in more than 30 years. Congressman Rick W. Allen (R-GA-12) released the following statement after House and Senate passage of the Tax Cuts and Jobs Act:
“I am encouraged by our current economic growth under President Trump and I am hopeful that with the passage of this historic legislation we will continue to see America’s economic potential unleashed. Thankfully, the Tax Cuts and Jobs Act is on its way to President Trump’s desk, ready to be signed into law – a true Christmas miracle!”
For Individuals and Families, the Tax Cuts and Jobs Act:
Lowers individual taxes and sets the rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep more of their hard-earned money.
Significantly increases the standard deduction.
Continues to allow people to write off the cost of state and local taxes – up to $10,000.
Expands the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children.
Preserves 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.
Preserves the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their hearts and homes to an adopted child.
Preserves the mortgage interest deduction – providing tax relief to current and aspiring homeowners.
Provides relief for Americans with expensive medical bills by expanding the medical expense deduction for 2017 and 2018 for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent beginning in 2019.
Continues and expands the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization.
Eliminates Obamacare’s individual mandate penalty
Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes.
Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts (IRAs) so Americans can continue to save for their future.
Provides immediate relief from the Death Tax by doubling the amount of the current exemption to reduce uncertainty and costs for many family-owned farms and businesses when they pass down their life’s work to the next generation.
For Job Creators of all Sizes, the Tax Cuts and Jobs Act:
Lowers the corporate tax rate to 21% (beginning Jan. 1, 2018).
Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers.
Protects the ability of small businesses to write off interest on loans.
Eliminates the Corporate Alternative Minimum Tax.
Modernizes our international tax system.
Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
Prevents American jobs, headquarters, and research from moving overseas.