Top 15 Things You Need to Know About the Tax Reform We Just Passed

“This is a historic moment. It’s been 31 years since the tax code was fundamentally reformed…Our plan simplifies the tax code, closes loopholes, and creates peace of mind for Americans everywhere. ”

-House Republican Conference Chair Cathy McMorris Rodgers

Since the signing of the last major tax overhaul, the American 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, up from its original 26,000 pages in 1986.

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, today we took a monumental step in taming this monstrosity of a tax code. The House passed the Tax Cuts & Jobs Act.

Once signed into law, 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.

The House has just passed a bill that:

    1. Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35%, and continues to maintain 39.6% for high-income Americans.
    2. Increases standard tax deduction – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
    3. Eliminates special-interest deductions and closes loopholes.
    4. Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after seven years.
    5. Preserves deductions for home mortgages and charitable contributions.
    6. Preserves the adoption credit so parents can continue to receive additional tax relief when choosing to adopt.
    7. Repeals the Alternative Minimum Tax so millions of individuals and families will no longer have to worry about calculating their taxes twice each year and pay the higher amount.
    8. Continues to allow people to write off the cost of state and local property taxes up to $10,000.
    9. Reduces the tax rate on business income of Main Street job creators to no more than 25%.
    10. Lowers the corporate tax rate to 20% – down from 35%, which today is the highest in the industrialized world.
    11. Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts.
    12. Provides a new, low tax rate of 9% for new businesses earning less than $75,000 in income.
    13. Prevents American jobs, headquarters, and research from moving overseas.
    14. Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
    15. Modernizes our international tax system.

 

If you’re interested in how else this tax reform will affect your life, check out FairAndSimple.gop to read the full bill text and Chair Brady’s marks.

The passing of this bill in the House is a big step towards bringing you tax reform that will create more jobs, increase take home pay, and make life simpler for everyday Americans.

There are still a few more steps to go, which is why you should sign up to receive updates directly to your inbox or you can text TAX REFORM to 50589 to receive updates directly to you phone.

We’re changing history here, and we want you to be involved every step of the way!