Brooks: Hardworking Hoosiers Will Be Able to Keep More of Their Paychecks
WASHINGTON, DC – Congresswoman Susan W. Brooks (R-IN05) issued the following statement after the unveiling of The Tax Cuts and Jobs Act:
“So much has changed in our country since 1986, but our tax code has not. It is stale and outdated. If left untouched, our current tax system will continue to hold Hoosiers back.
“The Tax Cuts and Jobs Act works for the middle class. Most importantly, it allows hardworking men and women to keep more of their paychecks. It is time for a simpler tax code with lower individual rates and higher standard deductions for families who are struggling to make ends meet.
“The tax rate for income from small businesses and startup companies is now reduced to no more than 25 percent. These businesses will now be able to immediately write off the cost of new equipment so their workers can receive the tools needed to succeed faster. Our plan also repeals the crippling Death Tax, allowing family businesses to pass down their life’s work for generations without facing double or triple taxation on assets.
“This pro-growth plan encourages job creation and expansion, and incentivizes businesses to thrive in our country. We cannot wait any longer to provide Hoosiers and Americans across the country with a tax code that is fair and simple, and honors their contributions and efforts to ensure the United States remains a leader on a global scale.”
The Tax Cuts and Jobs Act will help families because it:
- Does not change retirement savings options such as 401(k)s and Individual Retirement Accounts;
- Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35% while maintaining the 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;
- Eliminates special-interest deductions that increase rates and complicate Americans’ taxes;
- Continues the deduction for charitable contributions;
- Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000 – providing tax relief to current and aspiring homeowners;
- Creates a new Family Credit, which includes expanding the current Child Tax Credit from $1,000 to $1,600 and provides a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses;
- Preserves the Child and Dependent Care Tax Credit to help families care for their children and older dependents; and
- Continues the deduction for charitable contributions.
The Tax Cuts and Jobs Act will help job creators because it:
- Lowers the corporate tax rate to 20% – down from 35%;
- Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25%;
- Retains the low-income housing tax credit that encourages businesses to invest in affordable housing;
- Modernizes our international tax system and makes it easier and far less costly for American businesses to bring home foreign earnings so they can invest in creating jobs and increasing paychecks in our local communities; and
- Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
The House Committee on Ways and Means is expected to begin marking up the Tax Cuts and Jobs Act on November 6, 2017.
To read the Tax Cuts and Jobs Act, click here.
To read a section-by-section summary of the legislation, click here.
To read policy highlights of the legislation, click here.