Tax Reform Legislation is Positive Step for American Workers, Businesses and Families
December 19, 2017 -
Today the House of Representatives passed H.R. 1, the Tax Cuts and Jobs Act, legislation which overhauls the nation’s tax code, cuts tax rates for families and workers in every income bracket, closes loopholes and makes business tax rates more internationally competitive.
“Growing our economy will translate into more opportunities for every American to succeed,” said Congressman Bill Posey. “An important component to that effort is reforming and simplifying our nation’s tax code, which has become extremely complex, full of loopholes for special interests and very time consuming for individuals to navigate. This legislation will help Florida families, employees and senior citizens keep more of their hard earned money while also helping to grow and protect their life savings. Reforming our tax code will also help us create jobs, stay at the forefront of innovation and remain competitive throughout the world.”
Some highlights of the Tax Cuts and Jobs Act include:
• 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 from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively.
• Allow people to write off the cost of state and local taxes – up to $10,000. Also gives individuals and families the ability to deduct property taxes and income – or sales – taxes to best fit their unique circumstances.
• Preserves the mortgage interest deduction and charitable deductions.
• Expands the Child Tax Credit, preserves the Child and Dependent Care Tax Credit and the Adoption Tax Credit.
• Provides increased relief for Americans with expensive medical bills.
• Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts (IRAs) so Americans can continue to save for their future.
• Allows teachers to deduct expenses for school supplies.
• Lowers the corporate tax rate to 21% (beginning Jan. 1, 2018) – down from 35%.
• Eliminates incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
• Delivers significant tax relief to Main Street job creators.
• Preserving the Research & Development Tax Credit that encourages our businesses and workers to develop cutting-edge “Made in America” products and services.
• Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.