U.S. Rep. Rodney Davis (R-Ill.) today released this statement on the introduction of H.R. 1, the Tax Cuts and Jobs Act:
“There are no two ways about it, the bill released today will allow average middle-income families to keep more of what they earn,” said Davis. “By improving areas of the tax code most utilized by the middle-class, the Tax Cuts and Jobs Act turns our tax code from one that only works for a select few, to one that benefits the majority of working Americans. In the coming days and weeks, members from both chambers and both sides of the aisle will have an opportunity to give their input and ensure we end up with the best possible bill for our country’s economy and the people we represent. We have an opportunity to change the lives of working Americans for the better and I hope Democrats will help us do that.”
This legislation focuses on improving middle-income priorities like lowering rates, doubling the standard deduction, expanding the child tax credit, maintaining the mortgage interest deduction, and more. Details include:
Lowers individual tax rates
• Individual tax rates go to zero, 12 percent, 25 percent, and 35 percent so people can keep more of the money they earn throughout their lives, and continues to maintain 39.6 percent for high-income Americans.
Doubles the Standard Deduction, claimed by 75% of the 13th District
· Individuals: Increases from $6,350 to $12,000
· Married Couple: Increases from $12,700 to $24,000
New Family Tax Credit
· Child-Tax Credit increased from $1000 to $1600
· Adds a $300 credit for non-child dependents
Preserves Earned Income Tax Credit
· Combines existing Higher Ed tax credits to create a new enhanced American Opportunity Tax Credit.
· Expands 529 Plans to include dispersions to pay for apprenticeship programs.
Preserves Charitable Deductions
Home Mortgage Interest Deductions
· Preserves for existing mortgages and maintains the deduction for new home purchases up to $500,000
State and Local Property taxes
· Itemized Deduction of up to $10,000 for property taxes for the 25% of 13th District who currently itemize their taxes
· Does not touch 401(k) or IRAs
Alternative Minimum Tax
· Repeals AMT so millions of individuals and families will no longer have to worry about calculating their taxes twice each year and pay the higher amount.
· Doubles exemption for 6 years, then eliminates
Click here for more information on how this plan also helps small businesses and creates jobs.