Legislation maintains important education provisions, significantly increases standard deduction for individuals, families
WASHINGTON – On Tuesday, the U.S. House of Representatives passed the Conference Report to accompany H.R. 1, The Tax Cuts and Jobs Act, produced by the bicameral Tax Conference Committee.
U.S. Rep. Glenn ‘GT’ Thompson (PA-05) voted in favor of the bill, which passed the House by a vote of 227 to 203. Earlier in the morning, Thompson spoke on the House floor in support of the measure.
Upon approval by both the House and Senate, the legislation will be sent to President Donald J. Trump for his signature and will become law, taking effect Jan. 1, 2018.
Thompson released the following statement:
“I am proud to support this long-overdue tax reform that will bring immediate relief to American taxpayers across the board, families and businesses around the nation.
“For the first time since 1986, we are challenging the status quo and simplifying the tax code. Under this final legislation, low- and middle-income families, who have been struggling for a long time, will see their tax burden lowered, by nearly doubling the standard deduction.
“As it pertains to the Fifth Congressional District, according to the IRS, the 18 percent of taxpayers who choose to itemize on average about $21,000 in deductions.
“The bill will automatically allow for a $24,000 standard deduction – up from $12,700 – for those filing jointly. That’s nearly 82 percent of the taxpayers in the Fifth District.
“This proposal truly strives to help families keep more of their hard-earned paychecks.
“I also am also pleased that the final legislation maintains current tax preferences for education assistance. Specifically, the bill maintains the deduction for student loan interest payments and graduate tuition waiver exemptions for working students. I – and many of my colleagues – urged the Conference Committee to keep these provisions intact.
“I encourage my Senate colleagues to act swiftly, pass the bill and send it to the President’s desk for his signature.”
Highlights of H.R. 1
Benefits for All Families
- Lowers individual tax rates across the board
- Individual/Joint Filer Deduction nearly doubling
- Continues to allow people to write off the cost of state and local taxes
- Child Tax Credit Expansion
- Obamacare individual mandate repeal
- Medical Expensing Write Offs
Benefits for Every Type of Business
- Lowers the corporate tax rate to 21 percent (beginning Jan. 1, 2018) – down from 35 percent
- Offering a first-ever 20 percent tax deduction that applies to the first $315,000 of joint income for Main Street Businesses.
- Allows businesses to immediately write off the full cost of new equipment, removing a cumbersome depreciation regime.
- Protects the ability of small businesses to write off interest on loans.
- Modernizes our international tax system, making it easier for businesses to bring home foreign earnings and invest in America.