House Passes Historic Tax Legislation
Washington, D.C. – Today, the House of Representatives, in a historic vote, passed sweeping tax reform legislation. This vote marks the first time in approximately thirty years that the American tax code has been updated.
H.R. 1, the Tax Cuts and Jobs Act, doubles the standard deduction to $12,000 for individuals and $24,000 for married couples, and preserves the current rate of 23.8% for capital gains and dividends. The bill also doubles the Child Tax Credit (CTC) to $2,000 and provides a $500 credit for each non-child dependent. Important deductions are also preserved in the legislation, such as the medical expense deductions and education expenses in the form of student loan interest and out-of-pocket costs for teachers. H.R. 1 also provides support for graduate students by continuing to exempt the value of reduced tuition from their taxes. Virginia is estimated to add an additional 9,185 full-time employment jobs under this bill, and middle-income earners residing in the Commonwealth can expect to see an additional $730 in after-tax income.
“This bill is based on a simple premise: that hard-working Americans should be able to keep more of their hard-earned money,” said Congressman Scott Taylor. “An outdated, thirty year-old tax code is not adapted for 21st Century Americans and the realities they face. Millions of Americans and Virginians will see more money in their pockets that they can save, invest, and spend the way they want. Additionally this bill hits three of the fundamental issues I spoke about when I ran for Congress: (1) More money in working folks' pockets, (2) a more competitive corporate environment (to include pass-though small businesses), and (3) incentives to get the trillions of dollars parked overseas back and flowing through our economy."