Hudson: This Tax Cuts Bill Delivers
November 16, 2017
FOR IMMEDIATE RELEASE
November 16, 2017
Hudson: This Tax Cuts Bill Delivers
WASHINGTON, D.C. - Today U.S. Representative Richard Hudson (NC-08) released the following statement after the House passed theT ax Cuts and Jobs Act (H.R. 1), a historic bill to deliver bold, pro-growth, pro-family tax reform and overhaul our tax code for the first time in 31 years:
“Tax reform is about one thing: improving the lives of hardworking taxpayers now and for years to come, and this bill delivers,” said Rep. Hudson. “This will help communities large and small, rural and urban – small businesses starting up, businesses expanding and investing, bigger paychecks for people who have jobs and more job opportunities for others. That’s why today is such a great day for middle class families across our nation.”
With this bill, a typical middle-income family of four earning $59,000 (the median household income) will receive a $1,182 tax cut. In addition to saving from lower individual tax rates, working families can also expect big wage increases thanks to cutting the corporate tax rate. Nonpartisan analysis by the Joint Committee on Taxation (JCT) shows the Tax Cuts and Jobs Act tax relief for hard-working Americans at all income levels.
In addition, the bill is expected to create nearly 1 million new jobs, increase annual after-tax income for middle-income households by an average of $2,598, and grow our economy by more than 3.5 percent. According to the JCT, in North Carolina, the bill will lead to the creation of an additional 26,713 jobs and raise after-tax income for middle class families by $2,043.
The Tax Cuts and Jobs Act (H.R. 1):
- Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
- Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35% so people can keep more of the money they earn throughout their lives, and continues to maintain 39.6% for high-income Americans.
- 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 provides a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
- Preserves the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
- Makes filing taxes so easy that most Americans can use a form as simple as a postcard or an app on their smartphone.
- Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future.
- Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000 – providing tax relief to current and aspiring homeowners.
- Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25% – the lowest tax rate on small business income since World War II.
- Lowers the corporate tax rate to 20% – down from 35%, which today is the highest in the industrialized world.
- Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after six years, incorporating Rep. Hudson’s legislation, the Farmers Against Crippling Taxes (FACT) Act (H.R. 30), to permanently repeal the federal Estate Tax and end the double taxation that threatens the existence of family farms, small businesses and jobs.
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Issues:Economy and JobsTax Reform