Dr. Bucshon's Statement on Release of House Republicans’ Tax Reform Proposal
Dr. Bucshon Statement on Release of House Republicans’ Tax Reform Proposal
(WASHINGTON, D.C.) – Congressman Larry Bucshon, M.D. (IN-08) released the following statement after House Republicans released the Tax Cuts and Jobs Act:
“Hoosiers know that our tax code is broken and desperately in need of reform. It’s been 31 years since the last major reform of the tax code and since then, the tax code has grown in size and complexity resulting in a code that is too complicated and uncompetitive. Furthermore, the tax code has become littered with special-interest loopholes, deductions, credits, and other provisions that unfairly give an advantage to those individuals and businesses with the right connections in Washington. American families and businesses want and deserve a tax code that is fairer, flatter, simpler, and protects American jobs. This is exactly the tax code that the Tax Cuts and Jobs Act will deliver. Under this plan, hard-working American families will get a tax cut enabling them to keep more of their hard-earned money in their pockets. It will also level the playing field for American businesses struggling to compete in a global marketplace and protect American jobs – growing paychecks for current workers and spurring the creating of new jobs here at home. For far too long, the American Dream has been downsized for many Americans, and the Tax Cuts and Jobs Act is just what is needed to make it as big and bold as ever.”
Specifically, the Tax Cuts and Jobs Act will do the following:
· Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35% – while maintaining the current top rate of 39.6% for high-income Americans.
· Significantly increases 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, to help parents with the cost of raising children.
· Continues the deduction for charitable contributions and preserves the home mortgage interest deduction.
· Retains popular retirement saving options such as 401(k) and Individual Retirement Accounts.
· Repeals the Alternative Minimum Tax and Provides Immediate Relief from the Death Tax by doubling the exemption and ultimately repealing it after six years
· Simplifies the tax code so an individual or family can file their taxes on a postcard.
· Lowers the corporate tax rate to 20% - down from the current 35% rate today.
· Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25 percent – the lowest tax rate on small business income since World War II.
· Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity, and paychecks.
· Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
· Makes it easier and far less costly for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
· Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
CLICK HERE to read the full legislative text of the Tax Cuts and Jobs Act.
CLICK HERE to read the section-by-section summary of the Tax Cuts and Jobs Act.
CLICK HERE to read the policy highlights in the Tax Cuts and Jobs Act.
CLICK HERE to read examples of how the Tax Cuts and Jobs Act will help Americans of all walks of life.