U.S. Rep. Rodney Davis (R-Ill.) released this statement after the House passed H.R. 1, the Tax Cuts and Jobs Act, the first major tax reform bill since 1986:
“Today, is not about politics or the legacy of Republicans and Democrats. It’s about middle-class Americans who have not seen a tax break in more than 30 years, small businesses who continue to be taxed at a much higher rate than large businesses, and it’s about bringing back jobs and investments by corporations who have left this country because we have the highest corporate tax rate in the industrialized world.
"H.R. 1 is a pro-middle class, pro-small business, and pro-America bill that is necessary to ensure the kind of economic growth our country has not seen in years. However, this is just the first step. It’s imperative that our Senate colleagues pass a bill, get to conference to iron out the differences, and send a bill to the president’s desk so when people get their paychecks next year, they will see more of their hard-earned money going into the bank and less of it going to Washington. The stakes are high because this is our chance to change the lives of working Americans for the better.”
In the 13th District, a family of four making the median income of $78,509 will see a tax cut of $1,691 and a median income household making $49,758 for a single filer will see a tax cut of $1,224. Here is how H.R. 1 directly benefits middle-income Americans:
• Lowers tax rates. The first $45,000 of an individual’s income and $90,000 for joint filers will be taxed at 12 percent.
• Doubles the standard deduction. By doubling the standard deduction, the first $12,000 of income for individuals and $24,000 for couples filing jointly will be tax free. 75 percent of people in the 13th District currently take the standard deduction, instead of itemizing.
• Increases the Child Tax Credit from $1,000 to $1,600.
• Preserves the Adoption Tax Credit.
• Expands 529 savings plans to help more people save for college.
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