“We are about everyone in this country seeing tax relief…No matter who you are in this country, whether you’re a single mom or a small business owner — we want to give you tax relief.”
-House Republican Conference Chair Cathy McMorris Rodgers
The Tax Cuts & Jobs Act is about moving forward. It’s about ending an outdated and burdensome 31-year-old status quo. It’s about putting American workers back at the center of our tax code.
Over the past few months, we’ve worked through this process with you. We publicized our framework, bill text, summaries, and chairman’s marks, and we listened to your feedback through phone calls, emails, surveys and social media. Thanks to this dialogue and your commitment to have a voice, we have a new tax reform bill that reflects the needs of you – American people.
You spoke, we delivered.
Without further ado, here are some key takeaways of the Tax Cuts & Jobs Act.
The final bill:
- 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.
- 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 over $400,000. Parents must provide a child’s valid Social Security Number in order to receive this credit.
- 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.
- 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 choose.
- Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad
- Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes.
But this isn’t all. To see other updates and have other questions answers (maybe about state and local taxes) go to FairandSimple.gop.
In case you’re wondering how we got here, check out The Road to Passing Tax Reform to get caught up on the last few months.