Senator Lamar Alexander on Tuesday spoke with members of the Dickson County Chamber of Commerce about "how Tennessee families should begin to see lower taxes as a result of the new tax law the Republican Congress passed in December."
He said, “The Republican-led Congress and President Trump delivered a well-deserved Christmas present to Tennessee families and businesses.
The new tax law will help create more good-paying jobs for Tennessee families and let Tennesseans keep more of the money they earn in their pockets. I expect most Tennessee families will begin seeing the benefits of this new law in their February paychecks.
“For example, a family of four in Dickson making a little over $70,000 a year should save more than $2,000 on their taxes, and a single mother making $41,000 a year should see a $1,300, or 73 percent, reduction in her taxes. Parents should receive a tax credit worth up to $2,000 per child – and you could receive as much as $1,400 of the child tax credit as a refund. More than 450,000 Tennessee families claimed the child tax credit in 2015 so that means for these families we’ve doubled the amount they can deduct from their taxes for each child.
“The new law also repeals the individual mandate, which has been a particularly cruel tax to lower-income Tennesseans - most of the people in our state who pay the individual mandate penalty make less than $50,000 a year.
“Perhaps one of the most exciting things about this law is that it also cut taxes on businesses, which will help create more good-paying jobs and raise wages for Tennesseans. Tennesseans are already beginning to see the impact – Memphis-based FedEx announced over $200 million in pay raises, First Tennessee gave its employees a $1,000 bonus, and Wal-Mart increased its starting wage and provided a $1,000 bonus to eligible employees. These are just a few examples, and I’m optimistic there will be many more.”