The Tax Cuts and Jobs Act
If you had an extra $1,182, what would you do with it? That’s the additional income the average household of four earning $59,000 see in their paycheck under H.R. 1, the Tax Cuts and Jobs Act. This bill will deliver the tax cuts President Trump and Republicans promised and American families deserve. Our bill, which passed the House today, will help create jobs, increase wages and bring greater economic prosperity to Tennessee.
Currently, our tax code is unnecessarily long and confusing. This bill will cut individual tax rates for every low- and middle-income American, going from 7 tax brackets to just 4. To make filing simpler, we double the standard deduction so that the vast majority of taxpayers will be able to file their taxes on a postcard, instead of having to wade through a maze of special interest deductions. This plan also prioritizes families by expanding the Child Tax Credit from $1,000 to $1,600 and includes a $300 credit for each parent and non-child dependent to assist families with everyday expenses. I’m also glad this plan continues existing incentives for retirement savings accounts; in fact, the increased wages families will see because of tax relief will allow individuals and families to prepare for their futures and save for retirement, an issue I’ve worked hard on since coming to Congress.
The last time our current tax code was updated was 31 years ago. Most of us communicated solely by landline, the internet wasn’t widely available and Oprah Winfrey was just beginning her talk show career. Since then, despite the advancements in technology that have shaped the global economy, our tax system has remained largely unchanged. Tax reform is a once-in-a-generation opportunity that will help individuals, families and businesses in East Tennessee thrive under a simplified tax code that lowers the tax burden for low- and middle-income families, allows you to keep more of the money you earn and allows businesses to be more competitive. That’s why this plan is supported by nearly 70 tax policy, conservative and pro-business organizations.
This plan won’t just help individuals and families put more money in their pockets – it will also create more jobs and boost wages by incentivizing American businesses to do more business in America because of a competitive tax environment. The tax rate for small businesses under the Tax Cuts and Jobs Act will be no more than 25 percent, the lowest it’s been since World War II. The corporate rate will be lowered from 35 percent – the highest rate in the industrialized world – down to 20 percent. Also, we encourage American businesses to move jobs and headquarters from overseas by eliminating incentives that reward companies for shifting jobs, profits and manufacturing plants abroad. Businesses will also be able to deduct the cost of new equipment and promote the development of products made in America by retaining the Research and Development Tax Credit.
I will continue to support commonsense, pro-growth tax reform that will benefit Tennessee families, and I thank President Trump for making tax reform a priority for his administration.As always, feel free to contact my office if I can be of assistance to you or your family.