WASHINGTON, D.C. – Rep. Dan Newhouse (R-WA) released the following statement after voting in favor of the House and Senate conference report on The Tax Cut and Jobs Act, which provides the first major reform to the federal tax code in 31 years:
“As Republicans, we promised a unified plan to reduce the burden of taxes and government mandates on American families and businesses, and that is exactly what we have delivered,” said Rep. Newhouse. “Today, we passed the first major pro-growth, pro-family tax reform in 31 years. Doubling the standard deduction—which is used by eighty percent of filers in the Fourth Congressional District—and increasing the child tax credit will provide real relief for working families in Central Washington. Additionally, this bill is a win for small businesses and farmers by allowing them to immediately write off the full cost of new equipment and increasing those who are shielded from the unfair death tax which allows more family farms and small businesses to pass on the success of a lifetime of hard work to the next generation. We promised to remove the individual mandate, which is an unfair tax penalty that hits middle-income families in the Fourth District. With this major reform, that Obama-era burden will be removed once and for all.”
In Washington State, 88% of taxpayers who pay the Obamacare individual mandate penalty tax make $75,000 or less: Click to see the percentage of taxpayers who pay Obamacare’s individual mandate penalty tax in each county in the Fourth Congressional District: Adams, Benton, Douglas, Franklin, Grant, Okanogan, Walla Walla, Yakima.
According to the House Committee on Ways and Means, a median income married-couple with 2 children in the Fourth Congressional District will receive a tax cut of $2,043.
Fast facts on The Tax Cut and Jobs Act:
Ø Lowers individual tax rates for Americans to zero, 10%, 12%, 22%, 24%, 32%, 35% and 37% so people can keep more of the money they earn.
Ø Significantly increases the standard deduction to protect roughly double the amount of what Americans earn each year from taxes – from $6,350 to $12,000 and $12,000 to $24,000 for individuals and married couples, respectively.
Ø Expands Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children. The tax credit is fully refundable up to $1,400 and begins to phase out for families making over $400,000. Additionally, a credit of $500 will be available for families who are taking care of a non-child dependent such as a disabled grandparent who may need additional support.
Ø Preserves the Adoption Tax Credit.
Ø Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $750,000 – providing tax relief to current and aspiring homeowners.
Ø Continues to allow Americans to write off cost of state and local property taxes up to $10,000. According to the Internal Revenue Service data, in 2014, 80.4% of residents of the Fourth Congressional District claimed the standard deduction when filing.
Ø Provides relief for Americans with expensive medical bills by expanding the medical expense deduction for 2017 and 2018 for medical expenses exceeding 7.5% of adjusted gross income, and rising to 10% beginning in 2019.
Ø Eliminates Obamacare’s individual mandate penalty tax.
Ø Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes and the interest paid on student loans.
Ø To find out more please visit FairAndSimple.gop