PEARCE STATEMENT ON TRUMP SIGNING HISTORIC TAX PLAN INTO LAW

Dec 22, 2017 Issues: Tax Reform

Washington, D.C. (December 22, 2017) Congressman Steve Pearce released the following statement after President Trump signed the Tax Cuts & Jobs Act into law:

“For the first time in 31 years, our nation’s tax code is going to see a complete overhaul, putting more money back in the pockets of hard-working taxpayers. The nation’s complex and antiquated tax code has made it harder for families, when it should be working to help them. For a business, taxes can be the difference between keeping the doors open or closing up shop. By signing this bill into law today, we will see a more fair and simple tax code that creates jobs, raises wages, and reduces taxes across the board. This means you get to decide what to do with more of your heard-earned money.”

Background
Major companies announced new investments moments after the tax reform bill was sent to the President’s desk. AT&T said they plan on investing $1 billion in the U.S. next year, and a bonus of $1,000 to over 200,000 employees. Boeing CEO Dennis Muilenburg also praised the passing of the tax bill by Congress, announcing the company would take action to encourage innovation and growth by making a $300 million employee-related and charitable investment.

The final version of the Tax Cuts & Jobs Act includes:

  • Lowers individual tax rates to 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%
  • Nearly doubles the standard deduction from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively
  • Allows people to write off state and local taxes up to $10,000
  • Expands the Child Tax Credit from $1,000 to $2,000
  • Preserves the mortgage interest deduction up to $750,000 for first and second homes
  • Lowers corporate tax rate from 35% to 21% to create a more competitive environment
  • Expands medical expense deduction
  • Maintains Earned Income Tax Credit
  • Retains retirement savings options
  • Maintains tax exempt status of graduate student tuition waivers
  • Maintains tax exempt status of Private Activity Bonds for low-income housing
  • Repeals Obamacare's individual mandate penalty tax
  • Permits the responsible energy production on the Arctic National Wildlife Refuge (ANWR)

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