Last week, House Republicans introduced the Tax Cuts and Jobs Act, a historic and sweeping tax reform that will bring tax relief to all Americans. Washington finally has the opportunity to enact meaningful tax reform to create a system that is both simpler and fairer to all American income earners.
By delivering a tax return filed on a form as simple as a postcard, this tax plan eliminates complicated tax breaks and loopholes exploited by well-connected special interest groups. By simplifying and leveling the tax code, this plan will deliver significant tax relief to America’s middle class. Republicans are following through on our promise of lowering taxes and modernizing and streamlining our tax code.
In addition to lowering the individual tax rates, the plan doubles the standard deduction, which is the biggest win that the tax code can deliver to average Americans. Married couples will have their first $24,000 and single filers will have their first $12,000 exempt from taxation. These increases in the standard deduction will reduce the time demands and complexity of filing taxes, as well as allow Americans to keep more of their hard-earned money. Roughly 80 percent of filers in our district currently claim the standard deduction.
Thus, 80 percent of our filers will benefit right off the top with twice as much of their income tax-free next year. Of the 20 percent of our district that does use the itemized deduction, those individuals’ average deduction is less than the new joint filing standard deduction of $24,000, meaning the majority of them will be better off taking the new standard deduction in the future. Our district stands to see among the most tax relief in the nation!
The plan also slashes the tax rate for businesses to 25 percent, down for the current rate of 35 percent, which will unleash desperately needed job growth for our country. Allowing our small businesses to keep more of their profits means more jobs, better wages for our employees, and a more productive and robust economy that benefits all. A 20 percent corporate tax rate will make the United States more globally competitive and stop punishing businesses that operate here.
America’s not broken, Washington is. My colleagues and I, along with President Trump, have the opportunity to get government off the backs of American families because I trust individuals and families with their paychecks more than the government. By allowing individuals to keep more of the fruits of their labor, the American people will have more money to buy a home, save for their children’s education, and invest for retirement.
For more information, visit fairandsimple.gop.
Congressman Daniel Webster represents The Villages in the U.S. House of Representatives.
