U.S. Rep. Jackie Walorski (R-Ind.) Thursday released the following statement after the House Ways and Means Committee approved H.R. 1, the Tax Cuts and Jobs Act, setting up the historic tax reform legislation for a vote on the House floor next week:
“We just took a big step toward cutting taxes for middle-class families, simplifying our tax code, and leveling the playing field for American workers and businesses. Simply put, the Tax Cuts and Jobs Act will mean more jobs, higher wages, and bigger paychecks for hardworking Hoosiers. I look forward to voting on the House floor to pass this historic tax reform bill so we can give the American people the fair and simple tax code they deserve.”
Walorski is a member of the House Ways and Means Committee, which marked up the bill beginning Monday and approved an amended version today by a vote of 24 to 16. The committee made several improvements to the original bill, including preserving the adoption tax credit and providing additional tax relief for small businesses and startups.
American taxpayers send too many of their hard-earned dollars to Washington, making it harder for middle-class families to thrive. The Tax Cuts and Jobs Actmeans bigger paychecks for hardworking families, more money in their pockets, and more flexibility in how they use it.
- Lowers income tax rates for low- and middle-income Americans to 0, 12, 25, and 35 percent. It would maintain a 39.6 percent rate on high-income Americans.
- Roughly doubles the amount of income excluded from taxes, with the standard deduction increasing from $12,700 to $24,000 for married couples and from $6,350 to $12,000 for individuals.
- Supports families by expanding the Child Tax Credit from $1,000 to $1,600, providing a $300 credit for each parent and non-child dependent, and preserving the Child and Dependent Care Tax Credit and Adoption Tax Credit.
- Makes no changes to critical retirement savings options like 401(k)s and Individual Retirement Accounts.
- Streamlines higher education benefits so families can save for college and other education expenses.
Our outdated tax code makes it harder for businesses to create jobs and compete in the 21st century economy. The Tax Cuts and Jobs Act will help businesses grow, invest, and hire more workers, and it will keep America competitive in the global economy.
- Lowers the tax rate on small businesses to no more than 25 percent, the lowest rate on Main Street job creators in nearly 80 years.
- Provides additional tax relief for small businesses and startups with a lower rate of 9 percent on their first $75,000 in income.
- Ensures tax relief is targeted to local job creators by establishing strong safeguards.
- Helps businesses invest and expand by allowing full and immediate expensing of new equipment and by preserving the ability of small businesses to write off interest on loans.
- Lowers the corporate tax rate from 35 to 20 percent, below the average among industrialized nations.
- Levels the playing field for American workers by ending incentives to send American jobs, manufacturing, and profits overseas.
- Supports “Made in America” innovation by maintaining the Research and Development Tax Credit.
The tax code is overly complicated and full of special interest carve-outs and loopholes. The Tax Cuts and Jobs Act eliminates special interest tax breaks and makes the tax code so simple most people can file on a postcard-size form.
- Simplifies the tax code so most individuals and families can file their taxes on a postcard-like form.
- Eliminates special-interest loopholes while maintaining important middle-class tax incentives.
- Continues important middle-class tax deductions, including for charitable contributions, home mortgage interest, and state and local property taxes up to $10,000.
- Protects family farms and small businesses from the Death Tax by immediately doubling the exemption and repealing the Death Tax fully in 2023.
Learn more at walorski.house.gov/taxreform.
Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee.