You’d think it were going to, given how Twitter reacted to the Senate passing tax reform last week!
The alarmist claims about what the Tax Cuts & Jobs Act will do to the country range from…
To the apocalyptic :
We’ve heard that our tax plan hurts minorities, low-income families, the middle class, the disability community, women, and apparently everyone else who isn’t the human form of Scrooge McDuck.
All of these claims are incorrect, for the record, but today we’re going to tackle one argument specifically: the argument that tax reform is a raw deal for women. To help us correct this misconception, we asked Reps. Karen Handel (R-GA) and Claudia Tenney (R-NY) to break down why they support our vision for pro-family, pro-growth tax reform. Here’s what they had to say:
WOMEN WHO WORK
Did you know that more than 9.4 million businesses in America are owned by women? How about than nearly 3 million of those are owned by women of color, employing 1.4 million people?
Think that’s impressive? Just wait, there’s more!
Women are graduating from college at a faster rate than men.
More than 70 percent of moms are working moms.
And women make up 47 percent of the workforce and 40 percent of family breadwinners.
The 21st Century workforce is remarkably different than any generations before it, with both demographic shifts and vast technological advances.
That is partially why it is so important for us to update the tax code.
OUR CURRENT TAX CODE — NOT TAX REFORM — IS WHAT HURTS WOMEN
A lot has changed over the years, but our tax code is a complex and cumbersome relic built for a bygone era.
In the 1930s and 1940s, women rarely worked outside of the home, and most Americans had one job for life. As we’ve seen above, this is no longer the case. We have a 1948 law to thank for our joint filing system and the “marriage penalty” that unfairly taxes the lower income earner at the higher income earner’s rate.
We have a 1916 law to thank for our “death tax” that places a double tax on families who pass a farm or small business on to the next generation. We don’t need to look far to see the devastation this causes. Our colleague, Rep. Kristi Noem (R-SD), is quite open about the anger she felt when the IRS piled onto her grieving mother after her father was killed in an accident on their farm, forcing her family to take out a loan to pay the tax bill.
And it’s been nearly two decades since the Child Tax Credit was changed. The value has eroded over time as wages have been stagnant, but the cost of childcare and other expenses have dramatically grown. For a single mom, that can be a major adversity of overcome.
Is this really worth defending? That’s what we thought. These are three of the many reasons why, after years of House Republicans holding hearings and listening to the American people, we passed the Tax Cuts & Jobs Act.
WHY WE VOTED FOR TAX REFORM
We’re excited to be part of this movement for pro-growth, pro-family tax reform because we see the direct impact it will have on families, workers, and small business owners in our states and across the country.
Women are often the family budgeters, and that’s about to get easier with the House bill. Under our plan, the average family of four would see $1,182 back in their pockets. In our states, that average is even higher: $2,034 in Georgia and $2,335 in New York.
Our bill doubles the standard deduction, meaning more of your money will be tax free. If you’re single, you won’t pay taxes on your first $12,000 in income. If you’re married, that bumps up to $24,000. For comparison, this second figure is currently only $12,700.
For working moms, the changes in family tax breaks could be a game-changer. We expand the Child Tax Credit from $1,000 to $1,600, establish a new Family Flexibility Credit of $300 per tax filer, preserve the Adoption Tax Credit, and expand 529 savings accounts to K-12. These all provide extra cushion that will help cover the costs of childcare and other expenses, including using that $300 credit towards the cost of caring for elderly parents or other relatives.
…and those are just the pro-family provisions. For the millions of female business owners, relief is on the way. We’re simplifying the code and reducing the tax rate on Main Street to no more than 25 percent. American business owners haven’t seen a rate that low since World War II!
For the startups out there, our bill also provides a new, low tax rate of 9 percent for the first $75,000 of business income earned by owners of pass-through businesses of all types who earn less than $150,000.
Need new equipment for your business? Under the Tax Cuts & Jobs Act, you can write off the full cost. We want you to grow your business and train your employees — not be buried under compliance.
BY THE END OF THE YEAR
We represent very different states with diverse people from all walks of life. One common thread that weaves us together? We agree on the need to overhaul our tax code.
Women — and all Americans — deserve a tax code that empowers them to pursue their own unique version of the American Dream. We’re proud of our work, and we know that it will unleash our economy and strengthen our families.
Don’t let the alarmists distract you from what’s at stake. The end of America? Hardly. This is a new beginning, with more jobs, fairer taxes, and bigger paychecks.
For more on our tax reform plan, text TAX REFORM to 50589 and visit FairandSimple.gop
Here’s what House Republicans are saying about tax reform:
House Budget Committee Chair Diane Black (R-TN) via FoxNews.com: Conservative tax reform is on the way
Our plan rightly provides tax relief for job creators, empowering entrepreneurs and small businesses to continue opening, operating and expanding. In my state of Tennessee alone, the nonpartisan Tax Foundation estimates the “Tax Cuts and Jobs Act” will create 20,000 new jobs. And the average middle-class family will see a $2,200 increase in wages. This will provide a welcome jolt to the economy following the lackluster years under the Obama Administration.
During my nearly seven years as a member of the House, Republicans have been committed to modernizing the federal government’s outdated and overly complicated tax system. This is the year we fulfill that promise to the American people.
Without question, enacting tax reform is a challenge, but the benefits of seeing it through will be felt for generations to come. We cannot miss this opportunity.
Rep. Mia Love (R-UT) on Fox Business:
“Remember what [tax reform] does for families. I need to make sure that everyone understands this: when a family is able to save more of their money, they’re able to maybe put more money into education, buy a vehicle, do something. And what ends up happening is they’re less dependent on Washington trying to do everything for them. Again, [tax reform] is about giving people a little bit more opportunity, and a little bit more dependence on themselves so that they don’t have to wait for Washington…to try and take care of every aspect of their lives.”
Rep. Martha McSally (R-AZ) in AZ Central: Why I voted for the House’s tax reform bill
Families today are working more but can afford less. Throughout the United States, the cost of college, health care and housing have each outpaced wage growth in the past decade. Sixty-three percent of Americans don’t have enough to cover a $500 emergency.
When they become parents, they are faced with a new price tag: childcare for only one infant takes up 17.6 percent of a typical family’s income in Arizona, according to the Economic Policy Institute…Taxpayers deserve a tax code that is simpler, flatter and fairer, so that every American family and employer can file their taxes without paying astronomical compliance costs.
The Tax Cuts and Jobs Act that the House passed on Thursday with my support will bring historic relief — slashing taxes, closing loopholes, fostering job growth, allowing America to compete and win in a global economy, and putting more money back into your paycheck.
While there are many ways to measure how this plan will help Arizonans, the most important metric is how it will impact hard-working families like yours. Washington needs to respect your family by rewarding your hard work and returning your money.