McCaul on Passage of Tax Reform
WASHINGTON, D.C. – Congressman Michael McCaul (R-TX-10), Chairman of the House Committee on Homeland Security and a senior member of the House Foreign Affairs Committee, released the below statement after the House took historic action to reform our tax code by passing the Tax Cuts and Jobs Act.
Congressman McCaul: “Our tax code has not been updated in 31 years. A lot has changed since then and our tax code must reflect that in order for our country to remain competitive. That is why, today, the House took an important first step in fulfilling the promise Republicans made to the American people to create a fairer, simpler, and more competitive tax code that benefits working-class families. I voted with 226 of my colleagues in support of this bill which will create over 70,000 new full time jobs in Texas and provide an increase of $2,210 to the average Texan family. I commend my fellow Texan, Chairman Kevin Brady, for his diligent work on this historic bill.”
H.R. 1 will:
- Consolidate the number of tax brackets from seven to four.
- Expand the child tax credit from $1,000 to $1,600.
- 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 20%.
- Create a new tax rate of 25% for “pass-through” businesses – businesses whose profits pass-through directly to the owners – which were previously taxed at individual income rates.
- Bring offshore profits back to the United States fueling economic growth.