Rep. Loudermilk (R-GA) issued the following statement after the House passed the Tax Cuts and Jobs Act:
"Though the tax reform bill is a work in progress, this is a historic day - as House Republicans passed the most significant reforms to our tax code in over 30 years. To the young married couple just starting out, this is for you; we doubled the standard deduction so the first $24,000 a couple makes is tax free. To the average family of four, this is for you; under our plan, the average family of four will keep about $1,200 more of their hard-earned money. To the small business owner, this is for you; our plan gives small businesses the tools they need to compete. To the American worker, this is for you; our plan makes America competitive and will bring economic growth and better jobs. Americans should not need a team of lawyers or accountants to fill out their taxes – that's why we passed this simple and fair tax relief for hardworking Americans."
Tax Reform Highlights (Courtesy of the House Committee on Ways and Means)
Individuals and Families:
Lowers individual tax rates to 0, 12%, 25%, and 35% and maintains the top rate of 39.6%, but raises income threshold to $1 million for couples and $500,000 for singles.
Roughly doubles the standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
Establishes a new consolidated family credit, which includes expanding the child tax credit from $1,000 to $1,600 for each child and providing new credits of $300 each for the taxpayer, spouse and other dependents.
Preserves the Child and Dependent Care Tax Credit.
Preserves the Adoption Tax Credit.
Preserves the deduction for charitable contributions.
Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes for interest on up to $500,000 of mortgage principal.
Continues to allow individuals to write off the cost of state and local property taxes up to $10,000.
Repeals the alternative minimum tax.
Begins phasing out the estate tax by immediately doubling the exemption amount and repealing the estate tax after seven years.
Business:
Lowers the top corporate tax rate to 20%.
Reduces the top tax rate on pass through business income to no more than 25%.
Provides a new, low tax rate of 9% for the first $75,000 (joint filers) of income earned by an active owner in a pass-through business of any type.
Establishes safeguards to distinguish between individual wage income and “pass through” business income.
Allows businesses to immediately write-off the full cost of purchases of new or used equipment.
Protects the ability of small businesses and any businesses with “floor plan” inventory financing to write off the interest on loans.
Modernizes our international tax system by moving to a “territorial” system.
Returns income trapped overseas through “deemed” repatriation.
Includes “base-erosion” rules to prevent companies from hiding U.S. profits in offshore affiliates.
Provides an exclusion from the limitation on deductibility of net business interest for taxpayers that paid or accrued interest on “floor plan financing indebtedness.”
CLICK HEREto read the full legislative text of theTax Cuts and Jobs Act. CLICK HEREto read the section-by-section summary of theTax Cuts and Jobs Act. CLICK HEREto read the policy highlights in theTax Cuts and Jobs Act. CLICK HEREto read examples of how theTax Cuts and Jobs Actwill help Americans of all walks of life.
