The Tax Cuts and Jobs Act is about creating greater opportunity for men and women across the United States. It’s long-awaited tax relief for middle-income families in the Sixth District and sets a foundation of pro-growth reforms that benefit job creators of all sizes. It means more jobs, lower and fairer taxes, and bigger paychecks. Now, this historic tax reform is law.
The Tax Cuts and Jobs Act represents the most significant tax reform our country has seen in more than 30 years and is the result of a years-long effort by Republicans in Congress to reform today’s burdensome tax code. After settling differences between the House and Senate versions of the plan, Congress sent the bill to President Trump’s desk before Christmas.
What really matters is how this plan will impact you. The bottom line is that the Tax Cuts and Jobs Act lowers individual tax rates so families can keep more of their hard-earned money. Under this plan, a family of four earning an income of $73,000 will receive a tax cut of more than $2,000. The standard deduction is doubled to $24,000 for married couples filing jointly. The Child Tax Credit is expanded from $1,000 to $2,000, and a credit is also available for those caring for a non-child dependent, like a disabled parent. The Tax Cuts and Jobs Act preserves the mortgage interest deduction for current and future homeowners, expands the medical expense deduction, continues to allow taxpayers to write off state and local taxes, and maintains popular options used to save for retirement, like 401ks and IRAs. It also provides families with the flexibility to purchase the health coverage they want and need by eliminating the tax penalty created by Obamacare’s individual mandate.
From the way some painted this historic tax reform, you’d think it was the end of the world. Well, we know that is not the case, and I will tell you that we cannot stick with the status quo and continue to live under a tax system that is inherently unfair to so many Americans. Tax reform is finally a reality, and with it will come new opportunity and a welcome boost for many Virginia families and job creators. Following passage of the bill, several large employers announced commitments to make significant investments in the United States as well as bonuses and pay raises for employees. These are just the first tangible results of cutting taxes.
By creating a simpler, fairer tax system, the Tax Cuts and Jobs Act will help put more money in the pockets of families and encourage job creators of all sizes to invest in the United States. This tax reform is a victory for taxpayers, and we will only continue to see opportunity grow in the new year as much-needed tax relief is delivered throughout the country.
For more information on the Tax Cuts and Jobs Act, visit fairandsimple.gop.
- Congessman Bob Goodlatte