15 Things to Know About the Final Tax Reform Bill

Dec 18, 2017 | communications •

In the 31 years since the last major tax overhaul, our tax code has evolved into the monstrosity that we have today a Washington, D.C. status quo that is muddled with special interests and impossible-to-maneuver compliance regulations.

Our current code is more than 70,000 pages long.

It demands that you sacrifice time with your family to comply with its endless complexities.

It discourages job creation, driving profits and opportunities overseas.

It punishes and disrespects your hard work.

Under our current code, not only will you be taxed when you earn money, you will be taxed when you save it, and if you save enough, you will be taxed when you die.

Well, reader, this is why we’ve fought to pass the Tax Cuts & Jobs Act.

Signed into law on December 22, 2017, this legislation will pave the way for a new tax code that works for you. The Tax Cuts & Jobs Act will create more jobs, it will increase your take home pay, and it will make your life simpler.

Here’s what you need to know about it:

    1. Lowers individual taxes so people can keep more their hard-earned money.
    2. Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively.
    3. 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. The tax credit is fully refundable up to $1,400 and begins to phase-out for families making more than $400,000.
    4. Improves savings vehicles for education by allowing families to use 529 accounts to save for elementary, secondary and higher education.
    5. Preserves the mortgage interest deduction – providing tax relief to current and aspiring homeowners.
    6. Eliminates Obamacare’s individual mandate penalty tax – providing families with much-needed relief and flexibility to buy the health care that’s right for them, if they so choose.
    7. Continues to allow people to write off the cost of state and local taxes – up to $10,000. Gives individuals and families the ability to deduct property taxes and income – or sales – taxes to best fit their unique circumstances.
    8. 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.
    9. Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes.
    10. Continues the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization.
    11. 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.
    12. Lowers the corporate tax rate to 21 percent (beginning Jan. 1, 2018) – down from 35 percent, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
    13. Delivers significant tax relief to Main Street job creators by offering a first-ever 20 percent tax deduction that applies to the first $315,000 of joint income and it establishes strong safeguards so that wage income does not receive the lower marginal effective tax rates on business income.
    14. Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
    15. 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.

 

These are just some of the provisions in the new bill! If you still have questions about the Tax Cuts & Jobs Act, visit FairAndSimple.gop to see all the available information!


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