The Tax Cuts and Jobs Act, legislation to reform the United States tax code for the first time in a generation, passed the House of Representatives Tuesday.
Congressmen Scott DesJarlais, Chuck Fleischmann and Tom Graves said they voted to lower tax rates, double the standard deduction for individuals and families to save Tennesseans time and money, and to help more local businesses succeed.
The Tax Cuts and Jobs Act also repatriates profits from leading American companies. “The U.S. corporate tax rate is among the highest in the world, and this country is one of just a few to tax American companies not once, but twice, driving innovation, investment and jobs overseas, explaining lackluster wage growth for many years,” said Rep. DesJarlais.
"Another explanation is the dearth of small businesses, responsible for most job creation, which have been dying in this toxic tax and regulatory environment. Washington, especially the IRS, has suffocated entrepreneurs, including hardworking families,” Rep. DesJarlais said.
“Today’s legislation reverses policies that have enriched special interests and bureaucrats at the expense of middle-class Tennesseans who pay their salaries. This is a positive, forward-looking solution to persisting economic problems that stimulus and income redistribution never solved. My constituents want to keep more of their earnings to save, spend or invest as they like.”
The Tax Cuts and Jobs Act repeals Obamacare’s individual mandate. To spur start-ups and domestic manufacturing, the House-Senate agreement allows businesses to immediately deduct a wider range of capital expenses, as well as a higher dollar amount, said officials.
President Donald Trump has promised to sign the bill into law before Christmas.
“After a prolonged period of weak GDP and wage growth, finally beginning to recover, the country is ready for big changes. Republicans in Congress and the President are fulfilling our promise to Americans who deserve every opportunity to follow their dreams and reap the rewards. Ultimately, we all benefit from a healthy economy,” said Rep. DesJarlais.
"The last time Americans witnessed tax reform was 1986, and I am proud to have voted to change that today,” said Congressman Fleischmann. “This legislation demonstrates what can happen when Members work in a bicameral fashion toward one common goal- tax relief for families, workers, and businesses. I commend the leadership of Chairman Brady and the tireless work from Members of the Conference Committee, and look forward to seeing this legislation on the President’s desk.”
“This is a historic moment for our country,” said Rep. Graves. “When President Trump signs the Tax Cut and Jobs Act into law later this week, it will mark the first time the tax code was reformed in more than three decades.
“Our bill creates a simpler, flatter and fairer tax code,” continued Rep. Graves. “It puts more money in the pockets of hard-working Georgia families and makes the annual tax filing process much easier. It also spurs economic growth and private-sector job creation by slashing the corporate tax rate, which is currently the highest in the developed world, and cutting tax rates for small business income to the lowest levels since the 1940s.
“This bill is a Christmas present for every American family and business. Beginning on Jan. 1, 2018, the new tax code will take effect, meaning Americans will start taking home more of their hard-earned money as soon as February. The American people elected President Trump and the Republican Congress to do big things, and this fulfills one of our promises,” concluded Rep. Graves.
In detail, the Conference Report to Accompany H.R. 1, The Tax Cuts and Jobs Act will:
Increase the standard deduction to $12,000 for single files, $18,000 for heads of household, and $24,000 for joint filers.
Simplify the Corporate Tax Rate to a single-rate, 21 percent income tax.
Expand the Child Tax Credit to $2,000.
Repeals Obamacare Individual Mandate Penalty.