By Brandon Moseley
Thursday, the U.S. House Republican caucus unveiled The Tax Cuts and Jobs Act, which they claim will fundamentally reform the tax code for the first time since 1986.
U.S. Rep. Bradley Byrne, R-Montrose, issued a statement in response to the introduction.
“Tax reform has the potential to make America boom again, and it starts with putting more money in the pockets of hardworking Americans,” Byrne said. “The current tax code is too complicated and confusing, benefiting the elite while making things harder for American families. It is time for a fairer and simpler tax code that supports new jobs right here in the United States. This is going to be a process, and the bill released today is just a starting point. I encourage everyone to visit FairAndSimple.gop to read the plan and then welcome your feedback and ideas.”
“We need to get this right, and I look forward to working with President Trump to do just that,” Byrne said. “We cannot pass up this historic opportunity to reform our outdated tax code and unlock our full economic potential.”
U.S. Rep. Martha Roby, R-Montgomery, expressed optimism upon the release of a unified Republican tax reform plan. H.R. 1, the Tax Cuts and Jobs Act, would be the first major overhaul of the federal tax code in more than 30 years.
“This is a unique and exciting opportunity to deliver on our promise and give the American people the results they deserve,” Roby said. “Our tax reform plan will grow the economy, create jobs here in the United States, and allow hardworking taxpayers to keep more of their money in their pocket. An average family with about 60,000 dollars in household income would see their federal tax bill drop by about $1,200. For the people I represent, this can make a big difference. For that mom working a retail job or the dad driving the truck or that single parent working two or three jobs just to make ends meet, having an extra $1,000 in your pocket is a big deal.”
“I promise you hardworking taxpayers know how to spend their money better than the government does,” Roby concluded.
U.S. Rep. Robert Aderholt, R-Haleyville, said, “The tax bill released today is a good start, as it refocuses our tax code on today’s economy. Our current system was put in place when most Americans had never heard of the internet, the only phone they had was attached to the wall at home and Bill Curry and Pat Dye were coaching at Alabama and Auburn. It’s time for a tax code that puts working Americans first. More than 80% of the people in the 4th District will see their tax burden drop, and to me, that is a good thing.”
Thursday, Speaker of the House Paul Ryan, R-Wis., Ways and Means Committee Chairman Kevin Brady, R-Texas, and other members of House leadership and the Ways and Means Committee introduced the Tax Cuts and Jobs Act, which they promised to be, “Bold legislation to overhaul America’s tax code for the first time in 31 years. With this bill, a typical middle-income family of four, earning $59,000 (the median household income), will receive a $1,182 tax cut.”
Upon introducing the Tax Cuts and Jobs Act, Speaker Ryan issued the following statement:
“This is an historic day. For too long, hardworking Americans have suffered under a tax code that is too unfair, too complicated, and too expensive. That ends this year. The Tax Cuts and Jobs Act will simplify the code so you can file your taxes on a form the size of a postcard. And under our plan, typical middle-class families will see bigger paychecks and receive a $1,182 tax cut. That means more take-home pay and more money in your pocket. Working with the Senate and President Trump, we are going to make good on our promise to deliver relief to the American people. It’s time to get this done.”
For individuals and families, the Tax Cuts and Jobs Act:
Lowers individual tax rates for low- and middle-income Americans to zero, 12 percent, 25 percent, and 35 percent. 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 deductions that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard. Establishes 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. 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 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. 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. Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after six 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 job creators of all sizes, the Tax Cuts and Jobs Act:
Lowers the corporate tax rate to 20 percent – down from 35 percent. Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25 percent – the lowest tax rate on small business income since World War II. Establishes strong safeguards to distinguish between individual wage income and “pass-through” business income. 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 the interest on loans. Retains the low-income housing tax credit that encourages businesses to invest in affordable housing. Preserves the Research & Development Tax Credit. Strengthens accountability rules for tax-exempt organizations to ensure the churches, charities, foundations and other organizations receiving tax-exempt status are focused on helping people and communities in need. Modernizes international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system. Makes it easier and far less costly for American businesses to bring home foreign earnings to invest in America. Prevents American jobs, headquarters and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits and manufacturing plants abroad.
The House Ways and Means Committee will mark up the Tax Cuts and Jobs Act on Nov. 6, 2017.
Individuals can visit FairAndSimple.gop or text “tax reform” to 50589 to read the plan and learn more.