WASHINGTON – Today, U.S. Rep. James Comer (KY-01) voted for the Tax Cuts and Jobs Act (H.R. 1) to provide tax relief for hardworking Americans, simplify the tax code, and help our nation’s businesses compete at home and abroad. Under this historic tax reform bill, the typical American household will see their tax bill go down and their take-home pay rise. Small businesses, which are the economic engine of the First District of Kentucky, will receive targeted relief including lower rates and a simpler process that will allow them to focus on what they do best—creating jobs, growing the economy, and contributing to their local communities.
“I am proud to support this important legislation that keeps more money in the pockets of American families and businesses, rather than Washington bureaucrats,” Congressman Comer said. “By passing the Tax Cuts and Jobs Act today, the House of Representatives has taken a big step toward fulfilling our promise to enact meaningful tax reform for the first time in more than thirty years. Tax reform is a critical piece of President Trump’s plan to restore economic growth and prosperity for all Americans and I will continue fighting for his agenda and for the people of the First District, whom I represent.”
Highlights of the Tax Cuts and Jobs Act include:
- Lowering the individual tax rates for low and middle income Americans to Zero, 12%, 25%, and 35%, while retaining the 39.6% tax bracket for the highest income taxpayers.
- Significantly increasing the standard deduction to $24,000 for married couples and $12,000 for individuals, which means that almost twice as much of your earnings will now be protected from taxes.
- Lowering the tax rate for businesses to 20%, down from 35%, which is the highest in the industrialized world.
- Cutting taxes for small businesses to no more than 25% and providing a new tax rate of just 9% for businesses with less than $75,000 in income.
- Eliminating or consolidating many special interest deductions and tax credits, which will make our tax code simpler and fairer.
- Expanding the Child Tax Credit to $1,600 as part of the new Family Credit, which would also provide a $300 tax credit for each parent and non-child dependent and retain the adoption tax credit for families who open their homes to adopted children.
- Maintaining mortgage interest deduction for existing mortgages and preserving this deduction for newly purchased homes up to $500,000, in addition to up to $10,000 in state and local property taxes.
- Keeping the deduction for charitable contributions, streamlining benefits for higher education to help families save for college and pay for other education expenses, and maintaining popular retirement savings options such as 401(k) and Individual Retirement Accounts (IRAs).