Hensarling: House is Keeping Promise to Pass Tax Reform
WASHINGTON–U.S. Congressman Jeb Hensarling (TX-5) released the following statement after the House passed an overhaul of our country’s onerous tax code:
“For far too long our tax code has been unfair and complicated. It has harmed economic growth and diminished the dreams of our citizens. Today, that all changes. Today, the House of Representatives voted for a fairer, flatter, simpler, and more competitive tax code, a tax code built to propel our small businesses, bring jobs and capital back home, and to deliver tax relief to struggling families. It is a historic day in the House. Americans have the opportunity to see more jobs, fairer taxes, bigger paychecks, and a healthier economy. I was proud to cast my vote for the Tax Cuts and Jobs Act,” said Hensarling.
Highlights from the Tax Cuts and Jobs Act:
- Lowers individual tax rates to zero, 12%, 25%, and 35% and maintains top rate of 39.6%, but raises income threshold to $1 million for couples and $500,000 for singles
- Roughly doubles the Standard Deduction – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples
- Establishes a new Family Credit – which includes expanding the Child Tax Credit from $1,000 to $1,600 for each child and providing new credits of $300 each for the taxpayer, spouse and other dependents
- Readmits the Adoption Tax Credit which supports and provides tax relief to parents who adopt children
- Repeals the Alternative Minimum Tax which prevents families from having to calculate taxes twice a year
- Lowers the corporate tax rate to 20% – down from 35%
- Reduces the top tax rate on pass-through business income to no more than 25%
- Provides a new, low tax rate of 9% for the first $75,000 (joint filers) of income earned by an active owner in a pass-through business of any type
- Establishes safeguards to distinguish between individual wage income and “pass-through” business income
- Modernizes our international tax system by moving to a “territorial” system, which fixes the taxation of foreign profits of domestic businesses
Click here to watch Rep. Hensarling’s floor speech on tax reform.
“For almost a decade, Americans suffered under Obamanomics. Their savings decimated, their paychecks were stagnant, their American dreams were diminished. A new day has dawned under the leadership of President Trump, Speaker Ryan, and Chairman Brady. We are on the precipice of passing a fairer, flatter, simpler, more competitive tax code, one built for three percent plus economic growth.
“The American people can now imagine a tax code that brings jobs and capital back to America. They can imagine a tax code that is simplified from 70,000 pages to 500, where 90 percent of Americans can fill out their return on a postcard. They can imagine a tax code swept of all of the special interest loopholes. They can imagine a tax code creating lower rates for working Americans in small businesses. Now they can imagine a tax code that is all about economic growth. All of my friends on the other side of the aisle can only offer the politics of division, envy, and class warfare. I am proud to support the Tax Cuts and Jobs Act because it is all about better jobs, fairer taxes, and bigger paychecks.”