McCaul Applauds Tax Relief for Hardworking Americans
WASHINGTON, D.C. – Congressman Michael McCaul (R-TX), Chairman of the House Homeland Security Committee and a senior member of the House Foreign Affairs Committee, applauds the House passage of the final version of H.R. 1, the Tax Cuts & Jobs Act, to reform our tax code.
Congressman McCaul: “Today is a historic day. With my support, the House passed the final version of H.R. 1 to reform America’s broken tax code. This once-in-a-generation tax reform bill will provide hardworking American families and job creators big and small with much-needed relief and flexibility.
“To highlight some key provisions, we eliminate one of the most disastrous parts of Obamacare, the individual mandate, so Americans are no longer forced by the government to purchase insurance they do not want or need. Also, by doubling the standard deduction in our tax code, we are providing families with bigger paychecks and a simpler, fairer tax filing process. Furthermore, in lowering the corporate tax rate and providing for repatriation of foreign funds, we are bolstering investment here at home, allowing our tech hubs, like Austin, and other business communities to compete internationally once again. Lastly, by creating a new deduction for “pass-through” businesses, we are rewarding small businesses that for too long have been subject to unfair tax rates. These changes ensure the American entrepreneurial spirit – that for generations has driven innovation and cultivated the world’s greatest economy – is alive once again.
“I applaud my fellow Texan, Chairman Kevin Brady, and my colleagues in both chambers for their steadfast leadership on delivering relief, lower taxes, and bigger paychecks to millions of hardworking American families.”
The Tax Cuts and Jobs Act will:
- Lower individual tax rates;
- Repeal Obamacare’s individual mandate;
- Expand the child tax credit from $1,000 to $2,000;
- Roughly double the standard deduction, allowing about 90% of taxpayers to file their taxes on a postcard;
- Lower the corporate tax rate from 35% - one of the highest in the world – to a more competitive rate at 21%;
- Create a new 20% deduction for “pass through” businesses, which are small businesses that have their profits pass-through directly to the owners. These type of businesses included Sole proprietorships, S Corporations, Partnerships, and LLCs– which were previously taxed at individual income rates;
- Bring offshore profits back to the United States fueling economic growth.