U.S. Rep. Rodney Davis (R-Ill.) leads House Republican effort to maintain education provisions in the final tax bill. Last week, Davis led a letter with 25 Republican cosigners urging conference committee leaders to maintain tuition waivers and continued education assistance. Click here to view the letter.
The House-Senate Conference Committee is currently working to produce a final bill. Details are expected to be announced by the end of the week.
“How the deduction will fare as Congress reconciles its tax bills is unclear, but among those calling for its preservation are House Republicans who voted for the chamber’s bill. Today, Rep. Rodney Davis, a Republican from Illinois, plans to send a letter signed by at least a dozen other Republicans urging conferees to preserve the tuition deduction, and requesting that the deduction be expanded to cover employer payments towards an employee’s student loan balance.” – Politico Morning Education
“In a letter to top lawmakers working on a tax overhaul, Rep. Rodney Davis (R-Ill.) and 25 other House Republicans said the provision should be eliminated from the [House} legislation…The letter also encourages lawmakers to include legislation from Davis (H.R. 795) that would allow employers to help pay off employees’ student loans. House Ways and Means Committee Chairman Kevin Brady (R-Texas) praised Davis’ bill Dec. 7 as an “innovative approach on how employers can help young people with their student debt,” but suggested it wouldn’t be in the final bill. “We had so many terrific ideas on tax reform,” Brady told reporters. “But in specific provisions, not all could be addressed in this reform. So you’ll see us coming back next year in specific areas with what we think are further improvements.”’ – Bloomberg Government
“On Thursday, Reps. Rodney Davis (R., Ill.) and Mike Turner (R., Ohio), both of whom voted for the House tax bill, circulated a letter urging colleagues to continue to exempt the employer tuition benefits and the tuition breaks for university employees' families from taxation, and to allow employers to cover staffers' student-loan payments tax-free.” – Wall Street Journal
Davis previously sent a letter to Committee on Ways and Means Chairman Kevin Brady (R-Texas) and received a commitment from him on the House floor to work toward a solution to tuition assistance. Both provisions are maintained in the Senate bill, but were not included the House-passed tax bill.
Other important tax provisions
While these education provisions are important, it's critical to note that the majority of middle-income families and individuals in the 13th District will save under H.R. 1, the Tax Cuts and Jobs Act. 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.
• Doubling 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.
Click here to learn more.