Reps. Ted Budd, Richard Hudson praise U.S. House tax cut legislation
On Thursday, the U.S. House of Representatives passed major tax legislation by a slim margin and along party lines.
The bill, known as the Tax Cuts and Jobs Act, passed by a vote of 227-205 and now moves to the Senate. All House Democrats and 13 Republicans voted against the bill.
Rep. Walter Jones of North Carolina’s 3rd District, was among the few Republicans who opposed the bill.
The bill would amend the Internal Revenue Code to reduce tax rates and change credits and deductions for individuals and businesses. Key components of the bill include:
- A 15 percent cut in the top rate that large corporations pay, from 35 percent to 20 percent.
- A 14.9 percent cut in the top rate for most small businesses, 39.6 percent to 25 percent.
- An increase to the estate tax minimum, from $5.5 million to $11 million.
- A shift from seven tax brackets to four.
- A $600 increase in the child tax credit, to $1,600 per child.
- A new Family Flexibility Credit worth $300 a year for individuals and $600 for couples.
- A larger standard deduction for individuals and couples.
- The removal of most itemized deductions.
Jones said the plan could add trillions to the national debt.
“I’m all for tax reform, but it must grow the economy, not the debt,” Jones said. “Unfortunately, the tax bill voted on today would be financed not by cutting pending elsewhere in the budget but by adding up to $2 trillion to America’s debt.”
Rowan County representatives in Congress — Richard Hudson of the 8th District and Ted Budd of the 13th District — were in strong support of the legislation.
“Tax reform is about one thing: improving the lives of hardworking taxpayers now and for years to come and this bill delivers,” Hudson said. “ … (T)oday is such a great day for middle class families across our nation.”
Budd said the bill will cut taxes for the middle class, make the business climate competitive in the global economy, and simplify the tax filing process.
“(A)s a result of this bill, the average middle-class family in my district earning $59,000 will receive a $1,182 tax cut,” Budd said. “Rather than giving it to the IRS, a family would be able to keep this money and use for more important things such as raising their own children or paying down debt.”