House Passes Historic Tax Reform Legislation
Washington, D.C. – Today, the House of Representatives passed historic tax reform legislation in H.R. 1, the Tax Cuts and Jobs Act, sponsored by Representative Kevin Brady (TX-8). Passage of this legislation marks the first time in over 30 years since tax reform was undertaken in Congress.
“We have a thirty year-old tax code that has not adapted to the realities facing 21st century Americans,” said Congressman Scott Taylor. “A tax burden that is too great will leave middle class families with less money and fewer opportunities. This bill gives relief to millions of Americans by letting them keep more money in their pockets to save, invest, and spend the way they want.”
H.R. 1 overhauls the American tax code by reforming key aspects, such as lowering individual tax rates for low and middle-income Americans by consolidating the current seven brackets down to the following five: 0%, 12%, 25%, and 35%, while maintaining 39.6% for high-income Americans. Under the bill, the standard deduction is roughly doubled to $12,000 for individuals and $24,000 for married couples. Families with children can expect to see the Child Tax Credit (CTC) increased to $1,600 and provided with a $300 credit for each parent and non-child dependent. The bill also repeals the Alternative Minimum Tax (AMT) which saves millions of individuals and families from calculating their taxes twice and paying the higher of the two.
According to the Tax Foundation, H.R. 1 will create approximately 1 million new jobs, with an estimated 24,114 full-time jobs in Virginia. Middle-income families in Virginia can expect to receive $2,525 in additional after-tax income under this plan.
“Passing this bill brings us one step closer to helping families across the Commonwealth and the nation,” said Congressman Scott Taylor. “The time for Congress to lead is now. I urge my Senate colleagues to pass their tax reform bill so we can go to conference and solve this as a unified legislative body.”