Congressman Mike Bost: What House Tax Reform Bill Will Do

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The Bost Bulletin This was a big week for American taxpayers. I voted with my colleagues in the House to pass the Tax Cuts and Jobs Act because Southern Illinois’ hardworking middle-class families deserve a break. We need more jobs, higher take-home pay, and greater opportunity to get ahead. The Tax Cuts and Jobs Act is focused on empowering middle-class working families by delivering more jobs, fairer taxes, and bigger take-home pay.  I’ve worked hours going line by line through this legislation to make sure it'll work for Southern Illinois families. For the 78% of tax filers in Illinois’ 12th Congressional District who currently take the standard deduction, you will see an average $1700 more in your pocket after taxes. The Tax Cuts and Jobs Act gives you the breathing room you need to save for college, help raise a family, or prepare for a rainy day. When given the chance, I have no doubt you’ll keep a closer eye on your hard-earned dollars than any Washington bureaucrat ever will. The debate now moves to the U.S Senate and I expect them to implement the reforms taxpayers deserve. The numbers can be dry, but the vision for tax reform is straightforward. We are going for growth, simplicity, and fairness. For individuals and families, the Tax Cuts and Jobs Act: Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35% so people can keep more of the money they earn throughout their lives, and continues to maintain 39.6% for high-income Americans. Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples. Eliminates special-interest tax breaks that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard. Takes action to support more American families by: Establishing a new Family Credit – which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses. Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support. Preserving the Adoption Tax Credit so parents continue to receive additional tax relief as they open their hearts and their homes to an adopted child. Streamlines higher education benefits to help families save for and better afford college tuition and other education expenses. Continues the deduction for charitable contributions for Americans who donate so people can continue to donate to their local church, charity, or community organization. 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. Continues to allow people to write off the cost of state and local property taxes up to $10,000. Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future. Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after seven years. Family-owned farms and businesses will no longer have to worry about double or triple taxation from Washington when they pass down their life’s work to the next generation.  For job creators of all sizes, the Tax Cuts and Jobs Act: Lowers the corporate tax rate to 20% – down from 35%, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history. Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25% – the lowest tax rate on small business income since World War II. Establishes strong safeguards to distinguish between individual wage income and pass-through business income so Main Street tax relief goes to the local job creators it was designed to help most. Protects the ability of small businesses to write off the interest on loans that help these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks. Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home. Preserves the Research & Development Tax Credit – encouraging our businesses and workers to develop cutting-edge “Made in America” products and services. Strengthens accountability rules for tax-exempt organizations to ensure that churches, charities, foundations, and other organizations receiving tax-exempt status are focused on helping people and communities in need. Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.