Yesterday, the Ways and Means Committee introduced the Tax Cuts and Jobs Act. This tax reform bill represents years of hard work and the input of policy experts, business leaders, and everyday Americans across our country.
With this new bill, we are directly attacking the status quo — and that’s no easy feat. Before the bill text was even released, opponents began coming to and publishing their own conclusions about tax reform. If you’re in the Twitter world, you no doubt saw these.
Well, we’re going to take a minute to address two of the most popular trends among those who oppose the Tax Cuts and Jobs Act. Check it out:
Implying, of course, that these tax breaks only benefit the wealthiest Americans — which is completely unfounded. This is by far the most popular accusation regarding all things “Republican” when it comes to tax reform, but let’s take a look at the facts.
The Tax Cuts and Jobs Act delivers tax relief at every income level WHILE maintaining the top 39.6% tax rate on high-income earners. It lowers tax rates on low- and middle-income Americans and significantly increases the standard deduction, which means hardworking Americans can immediately take home more of their paychecks. Under this bill, the highest earners will continue to face the highest tax rates and pay the most taxes — in both dollar and percentage terms — of any Americans. In fact, our legislation eliminates dozens of costly and complex loopholes and special deals that have historically benefitted wealthier Americans the most — precisely so we can reduce tax burdens at every income level.
So, no, the Tax Cuts and Jobs Act is not some big break for the billionaires of America. It’s a pro-family, pro-middle income tax code that focuses on those who are working paycheck to paycheck; those who need and deserve a break from our 31-year-old burdensome tax code.
Continuing on the same, exhaustive rhetoric as #BillionairesFirst, this hashtag touts that our plan is taking money from the middle- and low-income earners to PAY for the top one percent.
Firstly, refer to the previous answer regarding this only being a tax break for the wealthy.
Secondly, why not one penny? How about 118,200 pennies ($1,182)? That is the dollar amount in savings that the median American household will save with this plan. The Tax Cuts and Jobs Act is suggesting a lower tax liability for Americans across the board.
With this legislation, middle-income families will get to keep more of the money they earn for what matters to them rather than sending it to the IRS. It reduces the tax rates for low- and middle-income Americans, and roughly doubles the standard deduction — protecting up to $24,000 of your family’s take-home pay each year from taxes. It 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.
Our legislation also simplifies the tax code so that nine out of ten Americans will be able to file their taxes on a form so simple it could fit on a postcard — saving families money as well as precious time and aggravation that today accompanies tax time.
Finally, the Tax Cuts and Jobs Act will help Main Street job creators unleash the growth of jobs, productivity, and increasing paychecks. This plan benefits the American economy and bring jobs and money back home. In fact, according to an analysis by the Tax Foundation, this plan will result in the creation of roughly 975,000 new full-time jobs, while increasing after-tax incomes by 4.4 percent in the long run. You can even see specifics on how your home state will fare according to this model.
So the “penny” rhetoric needs to stop. This is about relieving the crushing weight of our current tax code, helping everyday Americans succeed (and get paid), and putting America ahead in the worldwide tax system.
As Ways and Means Chair Kevin Brady explained, “Let’s not let Washington specialist interests, the TV pundits, or the pessimists fool you…We’re going to prove them wrong once and for all by getting pro-growth tax reform to the president’s desk this year.”
To see more about our plan for tax reform, visit FairandSimple.gop where you’ll find the Tax Cuts and Jobs Act bill text, summaries, FAQs, and much more.